HC asks DERC to file affidavit over tariff hike issue

Written by Kaushal shroff | New Delhi | Updated: Feb 21 2014, 05:40am hrs
The Delhi High Court on Thursday directed Delhi Electricity Regulatory Commission (DERC) to file an affidavit stating whether it has complied with the formula prescribed in the power watchdog's own tariff order before permitting power discoms BSES Yamuna, BSES Rajdhani and Tata Power Delhi Distribution (TPDDL) to hike their rates.

The high court gave this order on a PIL filed by AAP member Madhuresh Lakhaiyar, who has alleged that the commission, acting in collusion with the discoms, had permitted the companies to increase their power purchase cost adjustment charge (PPAC).

The commission had on 31 July, 2013 passed an order permitting BSES Rajdhani, BSES Yamuna and TPDDL to increase their PPAC charges by 6%, 8% and 7% respectively.

The power discoms, in turn, had sought an increase in PPAC surcharge. However, the commission, by an order passed on January 31 this year, denied their plea after it had resolved not to consider supplementary bills and past arrears of the companies in the computation of PPAC charges.

During the proceedings, Lakhaiyar's counsel told the court that a nexus between the state commission and the discoms is evident from the fact that even though PPAC is a component of tariff, no public hearing took place in complete violation of section 64 of the Electricity Act, 2003.