The Hindu : Discoms' moves may result in power tariff hike: BJP

Online edition of India's National Newspaper
Monday, Mar 29, 2004

New Delhi

New Delhi

Discoms' moves may result in power tariff hike: BJP

By Our Staff Reporter

NEW DELHI, MARCH 28. The opposition Bharatiya Janata Party has alleged that the tactics of the privately managed discoms to enhance their commercial interest in connivance with the Congress-ruled Delhi Government would result in a steep hike in power tariff in the Capital after the Lok Sabha elections in May.

In a statement, the BJP secretary, Vijender Kumar Gupta, who has filed a petition before the Delhi Electricity Regulatory Commission has urged the DERC not to accede to the discoms request of merging the various tariff categories, charging domestic and commercial consumption under the same category, and consider the difference between the amount billed and the amount realised as aggregate technical and commercial loss (AT&C).

"All these if agreed by the DERC would ultimately result in a steep tariff hike," Mr. Gupta alleged. In the name of increasing the fixed charges from Rs. 10 per KW to about Rs. 95, the consumers would be forced to pay for electricity which they have not consumed, he said.

"If the petitions made by the discoms to the DERC regarding merging of tariff categories are accepted then the lakhs of small house hold manufacturing units will have to pay the consumption charges at the rate equal to big industries. This would result in heavy burden on a large number of consumers," he said. Opposing the proposal to install single meters in a unit, he claimed that this would result in charging domestic consumers under commercial category.

Referring to the objections of the discoms with regard to payment of property tax on the plea that they were merely a licensee of the properties and not their owner, Mr. Gupta alleged that both the Delhi Government and the Municipal Corporation of Delhi were siding with the discoms, despite the fact that the Section 120 (1)(d) of the DMC Act provides that house tax would be levied upon the transferee or the licensee.

Mr. Gupta also objected to mandatory payment of 16 per cent return on capital to the discoms as it increases the annual revenue requirement, thus resulting in tariff hike.

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