The Hindu : New Delhi News : Cut power tariff by half, demand residents' bodies

Online edition of India's National Newspaper
Thursday, Jul 06, 2006

New Delhi

New Delhi

Cut power tariff by half, demand residents' bodies

Staff Reporter

`Over-achievement in cutting losses as claimed by the discoms should more than justify the reduction'

NEW DELHI: Stating that the claims of over-achievement by the private distribution companies in the Capital being referred to by the Delhi Electricity Regulatory Commission (DERC) are a positive indication, United Residents' Joint Association and People's Action have demanded that DERC announce a reduction in power tariffs in its new order due next week.

"How can it be that reforms are on target, but the target of reforms is still suffering with high power bills and poor electricity delivery?" asked URJA and People's Action in a statement. Members of the group argued against any subsidies on the basis that reduction in Aggregate Technical and Commercial (ATC) losses should more than justify the reduction in tariff that have been increasing since the time of privatisation.

"If the statements of DERC that one percentage point reduction of losses is equivalent to Rs. 80 to 90 crores is accurate, then the over-achievement claimed by the discoms should warrant a bounty for consumers. How come residents of Delhi still have not got the benefit of such a sterling performance by the discoms?" asked People's Action president Sanjay Kaul. Apprehending some wrongdoing, Mr. Kaul asked: "Could the reason be that the discoms have juggled figures to neutralise over-achievement against increase in distribution cost?"

Pankaj Gupta, Group Coordinator of People's Action, said they have references from a study conducted by a Pune-based non-government organisation that seems to suggest as much. Interestingly, URJA members had on July 1 sent a 12-day schedule of meetings with three RWAs from different areas to DERC. However, DERC refused the invite on the grounds that they had understood the concerns put forth by members of People's Action and URJA and it would serve no purpose in meeting others to discuss the same.

"It is clear that DERC is not comfortable with meeting the very people, " said Anant Trivedi of Ishwar Nagar RWA.

Clarifying that the current tariffs were close to double of what they should be, Mr. Kaul said the 50 per cent less campaign was as much a campaign against power theft as it is against the practice of charging the honest for the dishonesty of others. It is also an indicator of the fact that the genuine tariff should be in the region of half the current tariff. The DERC should provide relief to consumers in Delhi by slashing the power tariff by 50 per cent immediately. Considering that honest consumers have paid for theft for the past four years, a 50 percent reduction in tariff in not only valid but much needed to establish the faith of consumers in the power reforms, he added.

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