NEW DELHI: Power tariffs for various categories of consumers are set to go up in the Capital for the third time in a row since the privatisation of the power sector in July 2002. The Sheila Dikshit Government is understood to have given the go-ahead to the Delhi Electricity Regulatory Commission (DERC) to announce a 10 per cent hike in power tariff with immediate effect. A formal announcement is likely to be made by DERC on Thursday, the deadline for putting in place the revised annual tariff.

Sources in the Delhi Government said the decision to hike the power tariffs was taken after a Delhi Government team led by Chief Minister Sheila Dikshit and comprising Power Minister Haroon Yusuf and Finance Minister A.K. Walia made a presentation to the political secretary to the Congress president, Ahmed Patel, on Thursday evening. The hike for the domestic consumers is likely to be around 10 per cent and that for the commercial consumers around 12 to 15 per cent.

It is learnt that the Delhi Government was forced to take the route of increasing the power tariffs for the third time after it failed to get a favourable response from the Central Government to its efforts to release special funds for providing subsidy for financing the extra burden arising from the hike. Mr. Patel was apprised of the rationale behind the proposed hike and the need to keep power reforms on track. It was felt that by and large with the onset of the monsoon, the anger among the people had subsided and no adverse reaction was expected on the issue.

Highly placed sources informed that the Congress high command had sought a status report from the Delhi Government on the situation and the need to hike tariffs. Interestingly, the power hike comes despite one of the private discoms, North Delhi Power Limited (NDPL), asking for stable tariff regime and passing on the benefits to the consumers of the over achievements it made in meeting revenue targets. It is learnt that soon after her return from London on June 21, the Chief Minister had asked the DERC to hold on to the tariff order recommending around 25 per cent hike in view of the hue and cry over the poor power and water situation during the summer months. It was felt that the time was not ripe for a power tariff hike despite one of the DERC members stating that the tariff order was ready and would be issued any time. However, pressure from the Delhi Government forced DERC not only to revise the contemplated tariff hike but also hold back the order.

Similarly, the Finance Department of the Delhi Government is also understood to have put its foot down against extending any subsidy to the consumers, as it would set a bad precedent for the future. It was pointed out that Prime Minister Manmohan Singh had also expressed his reservations on extending any subsidies for power and water and had urged the States to make people pay for the services availed of by them.

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