The Hindu : DERC rider for discoms

Online edition of India's National Newspaper
Thursday, Mar 18, 2004

New Delhi

New Delhi

DERC rider for discoms

By Our Staff Reporter

NEW DELHI, MARCH 17. In a significant order, the Delhi Electricity Regulatory Commission (DERC) today linked payment of streetlight maintenance charge to discoms with their performance.

After the power distribution system in the Capital was handed over to private companies, the DERC has for the first time given an incentive to the three discoms for better maintenance and upkeep of streetlights in the Capital. At the same time, it has decided to impose a penalty for below standard performance.

However revising its earlier order of June 2003, the DERC directed the streetlight owning agencies -- the Municipal Corporation of Delhi, the Delhi Development Authority and the Public Works Department of the Delhi Government - to pay Rs. 73 against the existing charge of Rs. 60 as maintenance per month per streetlight point with effect from September 4, 2003.

As per the DERC order, the discoms would get Rs. 73 per point every month as maintenance charge if 90 per cent of the streetlights were found to be functional. For each one per cent increase in the performance up to 95 per cent, the discoms would get an incentive of one per cent over Rs. 73, the order said.

The incentive increases to 1.5 per cent for performance between 95 and 97 per cent and if more then 97 per cent streetlights became functional, the discoms would get an additional incentive of 2 per cent.

At the same time, 1 per cent of the maintenance charge would be deducted if only 80 to 90 per cent of the streetlights were found to be functional. The penalty would increase to 2 per cent for every percentage of under performance below 70 per cent, the order said.

According to the order, the energy charges would be based on the actual consumption of electricity. And the electricity rate would be 385 paise per unit, it said.

The discoms performance would be based on a joint sample survey to be carried out by a team of officials from the discoms, streetlight owners and an independent agency.

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