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The Delhi Electricity Regulatory Commission will hold a public hearing on “Draft Business Plan Regulations, 2017, and tariff petitions” next week. This will mark an important step in the tariff revision process, which started last month. DERC will analyse expenses and revenue requirements of power utilities, including discoms.
“The daylong public hearing on rate revision will take place on July 19 from 9am to 6pm on the basis of requests received from various stakeholders, RWAs and discoms at Lodhi Road. After that, we will decide whether the utilities are facing losses and if the rates need to be hiked for 2017-18,” said a DERC official.
For the last two years, there has been no power tariff hike in Delhi and keeping the rates low has been a key policy of the AAP government, which is also providing a Rs 1,720-crore subsidy for the current financial year. The last time a 5% tariff hike was effected was in July 2014 and was applicable for FY16. There was no tariff order for FY17. Since then, consumers pay for electricity at Rs 4 per unit for consumption of up to 200 units, going up to Rs 5.80-5.90 per unit for 200-400 units and Rs 7.30 per unit for 400-800 units or higher.
Discoms claim that they are incurring heavy losses, primarily due to non-revision of tariffs. For the BSES discoms, the expected revenue gap for FY18 on a standalone basis is reportedly around Rs 1,600 crore.
For Tata Power Delhi Distribution (TPDDL), it is estimate at Rs 1,355 crore for TPDDL. In their respective petitions to the regulator, the three utilities — BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power (BRPL) and Tata Power Delhi Distribution (TPDDL) — have quoted an aggregate revenue requirement of Rs 21,624 crore.
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