NEW DELHI: Faced with growing public unrest including a vast majority of residents' welfare associations, political parties and within the ruling Congress party itself, the Sheila Dikshit Government is understood to have conveyed to the Delhi Electricity Regulatory Commission (DERC) not to raise the power charges this year. At the same time, sharp differences have emerged within the Delhi Cabinet over continuation of the 10 per cent subsidy for lakhs of power consumers across the Capital.

Policy

According to highly placed sources, stiff opposition from hundreds of residents' welfare associations and their representatives, political parties and within the Congress, the Delhi Government is of the view that it is not the right time to effect a fourth hike in a row and it would rather wait for things to settle down. Although the Delhi Cabinet has the power to issue policy directions to the DERC for taking or preventing any decision in public interest, it is learnt that it was decided to communicate the "concern' of the authorities "unofficially'' to DERC so as to make it look like an order of the Commission taken without any influence or bias. The RWAs, including prominent citizens like eminent actor Roshan Seth, former CBI Director Joginder Singh and many other like-minded people, have voiced their protest against any power tariff hike and instead demanded cancellation of the licence accorded to BSES for power distribution in various parts of Delhi.

"There is growing concern in the Government that at a time when price rise has become a central issue and the Government is offering subsidised tomatoes, pulses and trying to fend off criticism for diesel and petrol price hikes, it would not be feasible to raise power tariffs. There is also pressure from within the party against such a move, which has made things all the more difficult. The DERC has been sounded about the mood prevailing within the Administration and has been asked to take necessary action,'' said a senior Delhi Minister.

On the other hand, sharp divisions have arisen within the Cabinet over the issue of continuation of subsidy for power consumers being given since July 14 last year. As the 10 per cent subsidy ends within the next 10 days, the Government has been forced to have a close look at the whole issue. It is understood that while some within the Cabinet are against continuation of the subsidy pleading that it is a bad practice that would negate the power reforms. It was argued that since things had improved since last year, there was all the more reason to withdraw the subsidy and let the 10 per cent held-back hike come into effect.

However, another section within the Cabinet is of the opinion that it would be disastrous to withdraw the 10 per cent subsidy component at a time when people are agitated over the poor power situation in the Capital.

Provoke

It is felt that any increase in power charges would give the Opposition a handle and also provoke the RWAs to come out on the roads. It was also argued that the present practice of 5 per cent subsidy each being shared by the discoms and the Government should be discontinued and the entire burden of the subsidy should be borne by the discoms as they have been earning huge profits.

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