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Power discoms seek tariff hike, citing costlier fuel

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The three power discoms, which distribute electricity to homes in the capital, have sought a hike in tariff.

The discoms have submitted petitions to the Delhi Electricity Regulatory Commission (DERC) for levying fuel surcharge to compensate for variations in fuel costs. If accepted by the power regulator, it is likely to result in an increase in power tariff in the city.

DERC officials said power discom BSES Yamuna Power Ltd (BYPL) has sought a 17.1 per cent hike in tariff, BSES Rajdhani Power Ltd (BRPL) has asked for a 7.26 per cent hike and Tata Power Delhi Distribution Ltd (TPDDL) for a 7 per cent hike.

“We have received the petitions by the discoms on Power Purchase Adjustment Charges (PPAC). We are looking into their claims and, accordingly, a decision on tariff hike will be taken. The decision will be taken by the month-end and, if there is a hike, then the new tariff will come into effect by November 1,” DERC Chairman P D Sudhakar told Newsline.

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PPAC is a surcharge levied to compensate the discoms for variation in fuel costs in the market. The DERC, in 2012, had introduced PPAC to help the discoms recover additional costs on account of costlier coal and gas.

In July, the DERC, while hiking tariff by up to 7.5 per cent for domestic consumers, had withdrawn the surcharge till October – which had resulted in marginal decrease in tariff for consumers whose monthly consumption do not exceed 400 units.

In January this year, DERC’s increase in tariff by 6-8 per cent had led to a standoff between the AAP government and the discoms.


Discoms say the cost at which they buy power from public sector units has gone up, which is one of the main reasons for hiking power tariff.

Increase in other costs such as rail freight charges for transporting coal have pushed up the price at which discoms buy power from generating plants, sources said.

If PPAC comes into effect, then East and Central Delhi are likely to see the maximum increase in power tariff. BYPL distributes power to these areas.


“Even after an apex court order, which mandates the discoms to pay their current dues to power generating companies, SJVNL and DVC have regulated power to the discom. Because of this, BYPL is purchasing additional power from other sources at higher rates,” a source said.

First published on: 23-10-2014 at 04:13 IST
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