The Hindu : Front Page : Delhi permitted to announce power subsidy

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Friday, Jul 07, 2006

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Delhi permitted to announce power subsidy

J. Venkatesan

Final hearing on revised power tariff for 2006-07 posted for July 25

New Delhi: The Supreme Court on Thursday permitted the Delhi Government to announce power subsidy for 2006-2007 and said it would be subject to the decision of the appeal filed by Delhi Electricity Regulatory Commission against an order passed by the Electricity Appellate Tribunal.

A Bench of Justice Arijit Pasayat and Justice Lokeshwar Singh Panta, however, did not allow the DERC to announce the revised power tariff for 2006-2007. The Bench posted the matter for disposal on July 25.

Appearing for DERC, senior counsel K. K. Venugopal said the revised tariff had been prepared. He said as per the existing arrangement, power subsidy would cease to have effect after July 15. Since seven days time was required before implementing the revised power tariff, he sought permission for announcing the revised tariff.

However, on behalf of Discoms it was submitted that the tariffs could not be determined without deciding the question of depreciation. In view of this, the court said it would dispose of the appeal and a decision could be taken thereafter.

In its application, DERC said that it had challenged the order passed by the Tribunal on May 24 directing the Commission to allow the distribution companies depreciation at the rate of 6.69 per cent. While entertaining the appeal, the apex court on June 13 had stated that the process of determination of tariff could continue but no announcement could be made.

The DERC said that the Tribunal's order was illegal as the discoms were entitled to only 3.75 per cent depreciation. It said on receipt of applications from discoms, the Commission had held public hearings and the process of tariff determination was complete in all respects. Since the revised tariffs had to be announced by Friday, it sought liberty to announce the new rates subject to the final outcome of the present appeal.

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