Saturday, February 1, 2014

Power Control: Rates hiked 6-8%, Warning of 10 hrs cuts. Kejriwal Irked

DERC has revised power rates in Delhi from today to the tune of 6-8 percent and power companies have cautioned 8-10 power cut daily in certain area due to financial crises. This has irked Delhi C.M. Arvind Kejriwal who has a poll promise to cut down 50% the power rates.

Reasoning the hike in the rates DERS Chairman PD Sudhakar said that step is taken to adjust fuel cost. Hike in surcharge will be 8 percent for BSES Yamuna Power Ltd, 6 percent for BSES Rajdhani and 7 percent for Tata Power Delhi Distribution Ltd.
  
"It is a surcharge. We have decided to effect the hike to adjust the power purchase cost of the distribution companies," Sudhakar said. He said power distribution companies are facing financial difficulties and ways must be explored to help them.
  
The hike will be on energy charges as well as fixed charges but will not be applicable on the additional eight percent sur-charges which were levied to help DISCOMs to clear the past dues.
  
Ahead of the power hike announcement, Reliance Infra-backed BSES Yamuna Power Ltd threatened to carry out power cuts up to 10 hours in Central and East Delhi demanding immediate financial assistance and hike in the power tariff. However, it was not clear whether they will still go ahead with the cuts after the hike.
  
The BYPL's threat was termed as "blackmail" by Chief Minister Arvind Kejriwal who warned all the power supplying companies of strict action including possible cancellation of licenses.
  
The Chief Minister also said Tatas and Ambanis, who run three electricity distribution firms in Delhi, were not the only companies in the country and government was willing to bring new players.
  
"There are no reasons for power cuts. I want to give them a warning that if they try to create panic in future, the government will take strict action against them," Kejriwal said.
  
After the hike in tariff, a government spokesperson said the "Delhi Government strongly condemns the decision to hike the tariff. When audit by CAG has already been ordered, such a hike is uncalled for."
  
He said the DERC should have waited for the outcome of CAG audit before putting burden on the people at a time when lot of questions are being raised on the functioning of these power distribution companies.
   
The DERC had introduced fuel surcharge in 2012 to help the private power distribution companies adjust their power purchase cost.

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