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Tariff estimate: DERC opposes Aptel order in SC

In 2012, DERC had rejected claims of costs incurred under 36 issues by electricity distribution companies BSES Rajdhani Power and BSES Yamuna Power

power sector companies
Adequate and timely tariff hikes, and lower aggregate technical and commercial (AT&C) losses are required to sustain structural improvement of power distribution companies, rating agency Fitch says.
In 2012, DERC had rejected claims of costs incurred under 36 issues by electricity distribution companies BSES Rajdhani Power and BSES Yamuna Power
In 2012, DERC had rejected claims of costs incurred under 36 issues by electricity distribution companies BSES Rajdhani Power and BSES Yamuna Power

The Delhi Electricity Regulatory Commission (DERC) has filed a petition in the Supreme Court against electricity tribunal Aptel’s order earlier this year that allowed certain expenditures to be included in the calculation for the FY11 tariff estimate and for annual revenue requirement (ARR) for FY 13 to FY 15 pertaining to Reliance Infra-promoted electricity distribution companies BSES Rajdhani Power and BSES Yamuna Power.

In 2012, DERC had rejected claims of costs incurred under 36 issues by the discoms, which included interest on working capital, interest on carrying cost and rebate on power purchase among other efficiency issues related to the power distribution business. DERC’s petition has challenged Aptel’s authority on the grounds that it can’t look into various components of tariff “without

considering that a licensee has given adequate returns or not as per the aim and spirit of the act”.

BSES discoms have already filed an appeal in the Supreme Court challenging some of

the expenditure claims in which Aptel sided with DERC’s decision.

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