With the model code of conduct lifted after the general elections,the Delhi Electricity Regulatory Commission (DERC) is all set to announce its annual power tariff hike. The Commission had earlier planned to announce the new tariff schedule on April 1 but the election code came in the way. Last February,when the order was reviewed,DERC had announced an across-the-board rise of 5 paise per unit for domestic,commercial and industrial consumers. This year,DERC officials said,the power distribution companies (discoms) have built a formidable case and have petitioned for a hike of almost 40 per cent. The current rate for domestic consumers is Rs 2.45 per unit for consumers who use 0-200 units,Rs 3.95 for consumers who use between 200 and 400 units,and Rs 4.65 for those using over 400 units. A tariff hike is a purely arithmetic exercise. Discoms can push (for a hike) all they want,but,in the end,the hike will be effected on the basis of numbers in front of us, a DERC official said. According to another official,the current hike could be anywhere between 5 and 50 paise (per unit). It will be a fair hike based on the difference between the discoms revenue for the last year as against its expenditure, the official added. If the expenditure is more than revenue,the official added,the difference will be taken as a basis for the hike. DERC had implemented a multi-year tariff order in 2007 for a period till 2011 but it had stipulated that retail tariff will be reviewed every year to take into account adjustments in uncontrollable parameters,such as power purchase costs and sales revenue. The tariff order this year will also take into account capital investments for Commonwealth Games projects, the official said. This will include augmentation of existing infrastructure as well investments in new projects. The discoms submitted their claims for this tariff order last December. Subsequently,the DERC held public hearings on the issue,though they were grossly under-attended. But the DERC official played down the lack of attendance on part of consumers,saying,The issue is a very technical one and perhaps consumers do not understand all aspects listed in petitions submitted by the discoms. Discoms,however,were asked to advertise their petitions widely. The DERC set up a three-member committee to study and analyse discoms claims. The order is likely to be announced within a week. The committee comprises DERC chairman Berjinder Singh and members K Venugopal and Shyam Wadhera.
