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DERC hikes tariff by 5 per cent, waives fuel surcharge

New Delhi, Jul 26: Power tariff for domestic consumers was today hiked by five per cent by Delhi's power regulator DERC but it waived the fuel surcharge, which will mean the hike will be marginal

PTI [ Updated: July 26, 2013 20:57 IST ]
derc hikes tariff by 5 per cent waives fuel surcharge
derc hikes tariff by 5 per cent waives fuel surcharge

New Delhi, Jul 26: Power tariff for domestic consumers was today hiked by five per cent by Delhi's power regulator DERC but it waived the fuel surcharge, which will mean the hike will be marginal for residents except those in NDMC areas.






Electricity rates in posh NDMC areas will go up by four per cent, while the increase will be 0.5 per cent for BSES consumers and two per cent for those getting power from TPDDL, according to DERC chairman P D Sudhakar. 

Immediately after tariff was announced Chief Minister Sheila Dikshit, with an eye on assembly polls in November, announced subsidy for the consumers whose consumption does not go beyod 400 units which will effectively mean that the bill for a section of consumers may actually go down compared to what they are paying now.

Announcing the new tariff structure for 2013-14 at a press conference, Sudhakar said the Commission has decided the hike the tariff by 5 per cent for domestic consumers to help the power distribution companies meet their financial constraints. The new rates will come into effect from August 1.

“We have decided to hike the tariff by five per cent with effect from August 1. As we have decided not to charge the power purchase adjustment cost, the effective hike will be 4 per cent for consumers in NDMC areas, 0.5 per cent for BSES consumers and 2 per cent for Tata Power Delhi Distribution Ltd consumers,” he said.

As per the new rates, a domestic consumer will be charged Rs. 3.90 per unit for first 200 units of power instead of current Rs 3.70.

The per unit rate will be Rs 5.80 against current Rs 5.50 for consumption between 201 and 400 units while it will be Rs 6.80 against Rs 6.50 for consumption between 401 units and 800 units. For consumption beyond 800 units, the per unit rate will be Rs 7 per unit.

Reacting to the hike in tariff, the Chief Minister said the government has noting to do with the functioning of the regulator and it decides about the rates on its own.  “We have decided to give subsidy to large section of the consumers,” she said.

She said Rs 1.20 per unit subsidy will be given for consumption upto 200 units while Rs 0.8 will be given as subsidy for consumption between 201 and 400 units. 

The government has been giving Rs 1 subsidy for last few years for consumption upto 200 units.

The power tariff in the city was hiked by 22 per cent in 2011 followed by five per cent hike in February last year. The tariff was hiked by up to two per cent in May last year and again by 26 per cent for domestic consumers in July last year.  The tariff was hiked by up to three per cent in February. 

“The government has neutralised the hike in tariff by giving subsidy to the tune of Rs 1.20 for consumption up to 200 units.

“For the second slab of 201 to 400 units subsidy will be Rs 0.80 per unit. As a result the tariff will come down to Rs 5 which is lower than the current rate of Rs 5.50 per unit,” Dikshit said.

Slamming the hike, Delhi BJP targeted the Dikshit government for putting “additional burden” on people, saying “it clearly exposes the unholy nexus between the private power supplying companies and the government”. 

In its order, the regulator said it has not effected any increase in fixed rates which vary depending on the load factor.

The DERC has decided to allow the discoms to continue taking 8 per cent surcharge so that past losses can be recovered.

Sudhakar said the tariff may go up in October as the regulator may impose the power purchase adjustment cost. The DERC reviews the power purchase adjustment cost after every three months.

The DERC announced separate rates for industrial units, agricultural activities and public lighting, Delhi Metro, and Delhi Jal Board.

As per the new tariff structure, Rs 6.60 per kilo volt will be charged against existing Rs 6.30 from Delhi International Airport Ltd. and Rs 6.10 per kilo volt will be charged from Railways against existing Rs 5.80.

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