Delhiites' power bills to go up by 2.5% to 25%

Jul 18 2014, 08:08 IST
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SummaryDelhi households will have to shell out up to 25% more on their monthly power bills.

Delhi households will have to shell out up to 25% more on their monthly power bills and commercial consumers up to 12% as the state electricity regulator announced revised tariffs for 2014-15.

On an aggregate basis, this would mean an additional revenue of 8.32% for each of the capital’s three distribution companies — BYPL, BRPL and TPDDL — which could be enough to cover their operating costs, return on equity and carrying cost (interest) on unpaid regulatory dues.

In the case of households using up to 400 units a month, the tariff hike would be marginal at 2.5%. For larger household consumers the hikes will be as follows: 14% for 401-800 units, 15% for 801-1,200 units and a steep 25% for consumption above 1,200 units.

Currently, there are only two categories of households, those consuming below 400 units a month and those consuming more.

As for commercial consumers, there are four categories depending on the load, and the tariff increases will vary within an 11-12% range.

The Delhi Electricity Regulatory Commission has kept the fixed charges unchanged for all consumers.

With the revised tariff, the three discoms will together generate a revenue of Rs 17,655 crore for FY15.

The regulator has decided to continue with the 8% surcharge that is levied on top of electricity charges to help discoms recover their deferred revenues ( regulatory assets) till end of March 2013, which is estimated at Rs 13,670 crore.

As per DERC’s estimate, additional revenue of Rs 1,386 crore will be generated from the surcharge.

The provision for recovery of regulatory assets has been made by DERC following the proposal submitted by it to the Appellate Tribunal for Electricity ( Aptel ) earlier. DERC has submitted the same proposal to the Supreme Court where the matter has been brought for adjudication by discoms. A final roadmap on recovery of regulatory assets will be prepared by the regulator only after the SC pronounces its verdict in this matter.

Meanwhile, a truing-up exercise is under way to validate discoms’ capital expenditure claims from 2006-07 to 2012-13. Discoms have yet to provide to the regulator required details on assets created with claimed expenditure to facilitate physical verification. As a last opportunity, DERC has given time till September to discoms to provide the details, failing which, the regulator has warned, provisional capitalisation allowed could be withdrawn.

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