Sheila: Might not withdraw subsidy to discoms

“The government needs to study the DERC tariff order in its entirety; we will then evaluate our options,” Dikshit told Newsline. “Let us study the report — if all works out well,we may not have to withdraw or reduce the subsidy.”

The subsidy is due to expire on May 31,and the Delhi government has said it will take up the issue in its budget session,scheduled to start June 17. This has led to confusion among the discoms about billing after May 31.

“At this point,we will wait for an indication from the government whether to continue extending the subsidy in bills,” an official from one of the discoms,who did not wish to be named,said. “When the subsidy expired last year,we were told two weeks later to continue with it.

“So,we will wait and watch what happens this time.”

The government had announced the subsidy after a 10 per cent hike in power tariff in 2005,but that led to protests by consumer groups. The government carried the entire cost of subsidy for the first year,and divided it with discoms subsequently. The subsidy benefits those who limit power consumption at 150 units in peak-demand months.

“DERC also announced in its tariff order that reduction in AT&C (Aggregate Technical and Commercial) losses over the last year has been very good,” Dikshit said. “We have to study the report and see if discoms can be given some incentive to reduce losses further.

“The issue of subsidy will also be taken up soon.”