Another power tariff hike may be in offing: Sheila

After announcing the hike in tariff,which came into effect from September 1,the Delhi Electricity Regulatory Commission (DERC) had indicated tariff could be hiked again early next year.

The discoms,not satisfied with the hike,have demanded further increase to sustain their operations. Earlier,they had been demanding a 60 per cent increase in tariff.

Asked about Finance Minister Pranab Mukherjee’s comment at the National Development Council meeting that states should raise power tariff as distribution companies are facing financial difficulty,Dikshit said the statement reflected the the real situation.

“The Centre has also admitted the reality. No government would like to increase the burden on the people. But we will have to understand the situation. People will have to understand that cost of power has gone up,” Dikshit said.

In August,the Delhi government,as it defended the announcement of the hike in power tariff,came under attack from its own in the Assembly. Ruling Congress party legislators demanded an immediate rollback.

Four-time legislators Mukesh Sharma and Subhash Chopra and debutant MLA Neeraj Basoya,all from Congress,alleged that power companies were fleecing consumers and sought the government’s intervention.

But Power Minister Haroon Yusuf said the DERC that decides power tariff considers “everything” before taking a final call.

The DERC increased power prices by up to 21.77 per cent and agreed to power companies’ demand that tariff be revised every quarter to make up for fluctuations in fuel price.

Yusuf told the Assembly: “There was no increase in the last six years… fuel price has increased by 103 per cent since 2005… power purchase cost (for the companies) has increased from Rs 1.52 per unit to Rs. 4.25.”