Delhiites are all set to get another breather as their power bills are likely to go down by four to six per cent for the coming few months. The decrease in the power rates has been possible only because the fuel surcharge levied on the electricity tariff has lapsed since March 15. Moreover, even private discoms are reportedly not going to ask for any fuel surcharge on the electricity bills in the near future.
According to the tariff mechanism operational in the national capital, after each quarter private discoms had claimed power purchase adjustment cost (PPAC) or fuel surcharge on electricity bills. Based on the claims made by the discoms, the Delhi Electricity Regulatory Commission (DERC) decides the power purchase adjustment cost for each quarter.
Delhiites had been shelling out anything between four to six per cent fuel surcharge for the past nine months. The power adjustment cost agreement for charging fuel surcharge expired on March 15 as the private discoms failed to file their petitions in this regard before the DERC.
A highly-placed source said that the private power companies will file fresh petitions before the new DERC chief by March-end. Once the DERC takes a final call on these petitions, then only the companies will be able to impose fuel surcharge on the power bills.
After March 31, the discoms are also expecting an annual power tariff revision. The discoms last hiked power tariff in 2014. Chief minister Arvind Kejriwal’s stiff resistance to the discoms’ proposed move to increase power tariff had forced the DERC not to effect any fresh hike in electricity bills in 2015.
The AAP government’s main poll plank was to provide 50 per cent subsidy on power tariff in Delhi. Soon after assuming power, Mr Kejriwal had granted 50 per cent subsidy on power tariff to consumers, using up to 400 units of electricity every month. The power subsidy had been costing about Rs 1,400 crore to the government exchequer. There are indications that the AAP government is going to continue the power subsidy in the upcoming Budget for 2016-17 fiscal year. The power subsidy is likely to cost Rs 1,600 crore to the state exchequer in the next fiscal year.
