Delhi raises power tariff for industry, lowers rates for domestic consumers

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Published: August 1, 2019 2:40:39 AM

The Delhi Electricity Regulatory Commission (DERC) on Wednesday came up with the tariff schedule for FY20, where it reduced the cost of electricity for domestic consumers and increased the same for industrial units.

Electricity consumers using less than 200 units would continue to pay Rs 3/unit.

The Delhi Electricity Regulatory Commission (DERC) on Wednesday came up with the tariff schedule for FY20, where it reduced the cost of electricity for domestic consumers and increased the same for industrial units.

While the fixed charge of industrial consumers continues to be Rs 250/kilovolt-ampere/month, their energy charges have been raised to Rs 7.75/unit from Rs 7.25/unit. Public utilities would pay Rs 6.25/unit, up 8.7% and advertising hoardings would be charged Rs 8.50/unit, 6.3% more than FY19.

Reversing the tariff mechanism introduced in the previous rate revision for FY19, the regulator has lowered the fixed charge component in electricity bills of domestic consumers. Monthly fixed charge for domestic consumers with a connection load of below 2 kilo-watt (KW) has been brought down from Rs 125/KW to the FY18 rate of Rs 20 per connection. Connection loads of 2-5 KW would cost Rs 50/KW (from Rs 140/KW) and 5-15 KW connections would be charged at Rs 100/KW every month (from Rs 175/KW).

The tariff mechanism was reversed after protests initiated by all major parties across the political spectrum.

Electricity consumers using less than 200 units would continue to pay Rs 3/unit. Slab rates for 200-400 unit and 400-800 unit categories have been kept at Rs 4.5/unit and Rs 6.5/unit, respectively. The tariffs for these categories were lowered in FY19 to compensate for higher fixed charges.

The DERC has estimated that the new tariffs would result into revenue surplus of Rs 239 crore for Delhi’s private distribution companies in FY20. TPDDL and BSES, the power distribution units of Tata Power and Reliance Infrastructure, respectively, supply power in the national capital. BSES has two units, BYPL and BRPL. These private discoms had claimed revenue requirement of Rs 22,409 crore in FY20 but only Rs 19,872 crore was approved by the regulator.

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