The Hindu : New Delhi News : Protests against new power tariff

Online edition of India's National Newspaper
Saturday, Dec 22, 2007
ePaper

New Delhi

New Delhi

Protests against new power tariff

Staff Reporter

Industry, trade associations join RWAs

Multi-year tariffs condemned due to high power cost in Delhi
Reduction in tariffs sought as discoms earned good profits in past five years

NEW DELHI: Members of various industry and trade associations in the Capital have joined the residents’ welfare associations (RWAs) in protesting against implementation of multi-year tariffs proposed by the Delhi Electricity Regulatory Commission (DERC).

The industry and trade associations have opposed the proposal that will fix tariffs for a combined four-year term.

“We have been informed by various trade and industry bodies that they support our demand to scrap the multi-year tariff proposal and instead demand a reduction of at least 25 per cent in power tariffs based on the profits collected by the power discoms over the past five years,” said People’s Action president Sanjay Kaul.

Describing the multi-year tariffs proposal as a “death knell” for industry because of the high cost of power in Delhi, members of industry have expressed dismay “at the regulator’s disdain for consumers, particularly bulk and commercial users”.

Contrary to expectations

Patparganj F.I.E. Entrepreneurs Association general secretary S. K. Maheshwari said: “During the last tariff hike, which was withdrawn, industry was left out of any relief. This new proposal is contrary to expectations. We were awaiting a reduction in tariff based on the handsome profits earned by the private discoms in the past five years, thanks to highly beneficial terms of the contract.”

Confederation of All-India Traders secretary-general Praveen Khandelwal has also supported the demand for a reduction in tariffs based on the past five years’ performance and the “exorbitant commercial rates being collected by the discoms”.

Extension of date

The RWAs and non-government organisations have sought an extension of the last date for filing objections based on the complex nature of the calculations required to analyse the annual revenue requirement filed by the discoms. “The residents have expressed scepticism over the speed with which the DERC is trying to finish off the public consultation process,” said B. S. Sachdeva, a former executive director of the Power Finance Corporation.

Printer friendly page
Send this article to Friends by E-Mail

New Delhi