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​Done in by the heat wave? Now get ready to bear the higher power tariffs as well!


It’s 47 degree Celsius and you have been keeping the AC on to have a good night’s sleep. Nightmare is on its way. If the summer has made you exhausted, power bills will exhaust your pockets soon. As per a news report in The Economic Times, electricity bills are expected to shoot up by 5%-20% from June as the Apellate Tribunal of Electricity (APTEL) has pulled up Delhi Electricity Regulatory Commission (DERC) over failure to pass on power purchase adjustment charges (PPAC).

DERC has also received an order from APTEL to pass on the charges for two quarters (from October 2014 to March 2015) within three weeks. A copy of the order has been sent to DERC chairperson PD Sudhakar. The controversial PPAC order for the first quarter of 2015-16 will be heard in July.

Sources informed the ET that the petition to APTEL was filed by Tata Power Delhi in March and pleadings were completed by April. Later, the BSES discoms supported the petition citing worsening financial problems with the withdrawal of PPAC.

The discoms stated that they were getting PPAC for three quarters (July 1, 2014 to March 31, 2015) despite submitting petitions to DERC regularly. The charges of July 1 to September 30, 2014 were the first ones denied to discoms. DERC had on November 13, 2014 allowed the charges to discoms, but a day later this order was withdrawn after citing non-furnishing of complete details of the fuel bills of generators.
Discoms claimed they moved APTEL as DERC was mum on the issue. "DERC, in its reply to the interim application by discoms, cited difficulties such as frequent revision of tariffs and adverse public interest for not releasing PPAC. It added that tariff determination for the current year, which will be completed shortly, can accommodate this PPAC so the application should not be allowed," discom sources have informed the financial daily.

The power distribution companies, however, cited financial crunch and argued that in 2011 the tribunal had passed clear directions that PPAC was to be provided monthly or maximum on quarterly basis.

What Delhi’s CM would be doing is the obvious question. The Aam Admi Party has reduced power tariff after coming to power.

(Image: Reuters)

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