NGO claims consumers over-billed by Rs 45,00 cr

The NGO also accused Chief Minister Sheila Dikshit of supporting the discoms and said government was allowing exploitation of the consumers by the private companies.

On May 4, 2010, the Delhi government, using a special power, had stalled DERC's decision to announce the annual tariff for 2010-11 till it re-examined the demands from discoms to increase the rates.

The DERC, which was making last minute preparations to announce the new tariff next day, after receiving the government directive had indicated that it had planned to cut down the tariff by 20 to 25 per cent as discoms would have a surplus of around Rs 4,000 crore if the existing tariff was not changed.

Although DERC was strongly arguing for a cut in tariff, the three-member regulator, following retirement and subsequent appointment of two new members, gave indication of taking a sympathetic approach to the demands of the discoms and hiked the tariff by 22 per cent in August 2011 and 26 per cent in June last year for domestic consumers.

The government's notification stalling the tariff order was quashed by Delhi High Court in February, describing the intervention as "absolutely unjustified, unwarranted, untenable".

Following the Delhi government's intervention, the then DERC headed by Berjinder Singh, who was strongly arguing for cut in power tariff, had sought opinion of the then Solicitor General Gopal Subramanium on the issue who held the government's directive as "ultra vires".

... contd.