The Hindu : New Delhi News : Power charges all set to go up again?

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Friday, Apr 07, 2006

New Delhi

New Delhi

Power charges all set to go up again?

Gaurav Vivek Bhatnagar

Despite a subsidy worth Rs. 3,660 cr. to discoms

NEW DELHI: Power is all set to become more expensive in the Capital even though the distribution companies have technically not submitted any tariff increase proposal to the Delhi Electricity Regulatory Commission.

With the power sector in Delhi showing a revenue gap, experts insist that to offset the losses of Transmission Company (Transco) the rate at which power is supplied to the three distribution companies (discoms) would be raised and consequently the power tariff will also be hiked to bring the discoms out of the red.

While until now the three distribution companies -- BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power Limited (BRPL) and North Delhi Power Limited (NDPL) -- have together been subsidised to the tune of a whopping Rs. 3,660 crores since they took over in July 2002 and they have also reduced thefts, the power sector accounts are being manipulated in such a way that the tariffs would continue to head north.

But what has really perplexed experts is that while the efficiency of the discoms has gone up and the aggregate technical and commercial losses -- which include thefts -- have declined, still the tariff are going up constantly. In the past three years the tariffs have increased by about 40 per cent.

And while last year in July the Delhi Government had subsidised the 10 per cent hike in the wake of pressure from the people, the term expires in three months from now after which the tariff would automatically go up.

"That no tariff proposal has been submitted is something which is said every time. However, the tariff proposals are not disclosed. And then due to the revenue gap, the regulator is left with no option but to increase the tariff," said Rajan Gupta, former member of the Delhi Electricity Consultative Council, adding that the problem lies in revenue realisation as there is no check of the Delhi Government on what is shown in the account books.

Stating that with every one per cent decline in power theft, there is a consequential saving of about Rs 80 crores, he said considering the decline in the theft figures and the subsidy given by the Delhi Government there should not have been any need for tariff hike all these years. But contrary to that, while every time the discoms do better than before there is also a raise in tariff.

Incidentally, discoms are also being given power at a concession while this was not the case with erstwhile Delhi Vidyut Board which purchased power at much higher rates. The New Delhi Municipal Council also purchases power at a higher rate than discoms and it still supplies power at the tariff levels of 2001.

In the coming year all the discoms are expected to show a net revenue surplus with BYPL showing a surplus of Rs 75 crores and BRPL of Rs 12 crores in 2006-07. Their capital expenditure is expected to be Rs 322 crores and Rs 451 crores respectively.

The discoms have also worked hard to reduce the Aggregate Technical and Commercial losses. While those of BRPL would go down from 51.5 per cent in 2002 to 31 per cent in 2006-07, those of BYPL would be down from 63 per cent to 40 per cent.

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