‘Discoms monthly surplus Rs 300cr’
The Delhi Electricity Regulatory Commission (DERC) on Thursday stated that the private power distribution companies (discoms) are overcharging consumers to the extent of Rs 300 crores per month due to the Delhi government’s direction which put on hold the new power tariff from coming into force. The DERC has confirmed widely-
speculated substantial cut in the power tariff for the first time. it further stated that the non-issue of the new power tariff order has resulted in non-accounting of surplus of Rs 3,577 crores for 2010-11.
DERC chairman Berjinder Singh on Thursday submitted the statutory advice to Delhi chief secretary Rakesh Mehta as demanded by the government as per its earlier direction. “The tariff orders need to be issued immediately in the interest of consumers,” Mr Singh has noted in his statutory advice.
Mr Singh has also mentioned that the other members of the commission have been trying to delay in giving the statutory advice despite repeated reminders. “Members have taken a view that the orders need not be issued and at the same time their effort is that the statutory advice be delayed till my retirement in September, 2010. Such an approach is only helping discoms and consumers are being deprived of the rightful tariff reduction,” Mr Singh has noted in his advice.
Countering the city government’s concerns that a tariff cut may force a substantial hike next year, he said, “The commission has already decided to introduce power purchase adjustment regulations after the issue of tariff orders which would take care of the speedy recovery of additional power purchase cost”.
Hitting out at the discoms, Mr Singh further says that “they have lied completely in projecting incorrect figures. If such incorrect statements would have been made by them in the tariff petitions before the commission, they would have been liable to be prosecuted”.
He further notes that the entire cost of Rs 1,775 crores to buy power through bilateral arrangements is being allowed in the proposed tariff. The DERC has further stated that with the availability of regulated power from the upcoming plants at Jhajhar, Dadri and Bawana, the discoms’ surplus would double in the coming time.
The DERC chairman also noted that the “discoms clearly misrepresented that the lenders’ covenants had been breached”.
“The position of NDPL is so excellent that it can be compared to any other financially strong company. The fact is that the lenders have been continuously sanctioning loans to them as recently as June, 2010,” Mr Singh has noted.
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