Delhi: Tariff change unlikely this year

Delhiites can rule out any kind of electricity tariff revision this year — reduction or hike. With Delhi Electricity Regulatory Commission  (DERC) chairman and two members unable to reach a consensus on tariff in Delhi, major decisions have been put on hold till the end of the Commonwealth Games in October.

Thereafter, new appointees in the Commission would be likely to review the situation afresh before reaching a final decision on what Delhi should pay for power — a decision not likely to be implemented before next year.

With present DERC chairman Berjinder Singh due to retire in third week of September, sources indicate that senior of DERC’s two members could be appointed as acting chairman. "This is a key point in the Delhi Electricity Reforms Act. This is also a practice followed by other regulatory commissions in the country where senior members are appointed as chairman. In an instance, if the senior member refuses, the junior member can also be appointed," said sources.

Where tariff fixation in Delhi is considered, the two DERC members, Shyam Wadhera and S R Sethi, have opposing views with the chairman. While Berjinder Singh has been pushing for a tariff reduction, the two members have been insisting on cost-reflective tariffs which may not necessarily mean a hike but ruled out a reduction. All eyes will be on the next person who will chair the commission after Singh’s retirement, to see what decision the commission would take in tariff fixation.

Chief secretary Rakesh Mehta said: "The issue for appointing a new chairman will be addressed when the time comes. Right now, our entire focus is only on the Commonwealth Games. Earlier also, the commission was functioning with just one member and chairman for a long time, so it won’t be a big deal if one of the members take over chairmanship for a period. It’s allowed in the Act."

Sources say that a hike in tariff next year will be on the cards mainly due to delay in commissioning dates of mega projects and increase in gas price. "Bawana has been delayed by almost six months, Dadri by two months and the power from Damodar Valley delayed indefinitely. This means longer durations where discoms have to purchase power from outside. If the numbers add up, the commission could be forced to announce a hike in 2011," said a highly-placed source.