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Friday, May 7, 2010

Your Power Bill May Go Up Every Three Months


A new formula is being worked out to hike your electricity bills every three months, even as the power distributors (discoms) for the first time asked the Delhi government to bail them out by lending Rs 700 crore to meet a perceived cash crunch.

Sources said the Delhi Electricity Regulatory Commission (DERC) has in principle agreed to consider a new financial tool for discoms allowing them to charge a variable "fuel surcharge" in the elec- tricity bills every quarter.
 
Thus, the power tariff will be reviewed every three months, as the fuel-surcharge component will help discoms recover the extra money they pay to power generators whenever the cost of gas or coal used to produce the power increases.

The power generators charge this monthly, over and above the per unit cost of power they sell, if the input cost of coal or gas goes up.

Discoms have been complaining that this causes a bleeding of their cash as they recover the extra money only two years later when their expenses are trued up, while borrowing to meet expenses now.


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With thanks : source : Hindustan Times

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