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Tuesday, September 13, 2011

There should be no Power Tariff Hike


We had attended the public hearings, called by DERC and submitted a detailed request for consideration. The various points submitted by us, in our letter, included :


TARIFF PLANS : Please refer the Annexure 9 on the bsesdelhi.com. On page number 10, paragraph 5 says that, "It is pertinent to note that while in the corresponding paragraph the Chairman has alleged that after the prudence check the actual trued up figures shows a revenue surplus of around Rs. 75 Crores as against a deficit of Rs. 606 Crores claimed by the DISCOMS, on the other hand at paragraph G (ix) at page 12 of the advice, the Chairman has stated that the DISCOMs had claimed a gap of Rs. 606 Crores which, after the prudence check was found to be a surplus of Rs. 25 Crores. This inconsistency in the figures provided in the advice further puts to question the veracity of the statement made in the advice and the conclusions arrived therefrom.”. It continues saying that, “ without prejudice to the above,assuming but not admitting that the said figures are correct, it is submitted that…………”

Therefore, we had requested the DERC to opt the CAG Audit, as only that Audit can lead us to a proper direction. Till than there should be no upward price revision.On this submission i was QUOTED by HINDUSTAN TIMES, as below :
























My other points in the submission to DERC included :


The Technical & Commercial losses have progressively come down from 57%, ( which resulted in almost half of the energy being lost on the way ) before privatization to 14 % - 20% for various DISCOMS  in 2010 – 11 ( though provisional & yet to be approved).

I also raised objections on the collection of Aditional Security Deposits as below :

Please refer the  DELHI GAZETTE, Wednesday, April 18, 2007 . It contains DERC SUPPLY CODE AND PERFORMANCE STANDARDS REGULATIONS, 2007. Under its heading SECURITY DEPOSITS i.e. CHAPTER 29, It says that all new consumers shall pay security at the following rates i.e. Domestic Rs. 600 per KW & Non – Domestic Rs. 1500 per KW.

My objections on this issue were :

The consumers who are having DISCOM meters for the last many years, should never be considered as the NEW CONSUMERS & therefore, if necessary should be charged at much lower rates, say @ 25% for any such load enhancement.

The purpose of Security deposit is to adjust any dues ( if the consumer cancels connection) and refund the balance. In the case of DISCOMS, it is simply the monopolistic atmosphere where consumers have no choice to opt any other service provider. And therefore, the money so collected is not a security deposit BUT a permanent Fixed deposit in the hands of DISCOMS.

In any case, these DISCOMS are raising the bills as per meters run by them for the actual energy used by a consumer. Means there is no direct loss to discoms from such load variance. Than why they want to collect crores n crores of rupees from the public of Delhi on the name of so called security deposits.

We had sought clarifications on the issue of VARIABLE EXPENSES also. We expected from DERC as below :

We are sorry to say that these DISCOMS are no more a service providers but purely corporate houses with the sole aim of earning huge profits. We hope that DERC will look into the pains of the consumers through various RWA / TRADE representations, submitted, during the Public Hearingss & will opt the CAG audit & will stop the notices of additional security deposits.


The result / Outcome of these public hearings was quite SHOCKING as the DERC had raised the Power Tariff by 21.77%. Further to this SHOCK, the Tariff may go up every three months as the regulator - DERC - decided to review the electricity rates quarterly to adjust the power purchase cost of the distribution companies.


Now it's being heard that DERC may soon go for CAG Audit of the DISCOMs. But don,t know, if it will actually happen.


With best regards,

B S Vohra
President
EAST DELHI RWAs JOINT FRONT
( A federation of RWAs of Delhi East )
rwabhagidari@yahoo.in
www.RWABhagidari.com

2 comments:

  1. Sir,
    There is more to what you have said as there is complete game planned before the license was granted and the same continuous under one garb or the other eg recent MDI case Sir when they do not have POWER how would they increase the supply ?
    Many more Sir will keep you updated on the same.
    ex Advisor IEEMA,Advisor MDA,Pres HDF etc

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  2. Sir,
    Firstly take this opportunity to wish all member's of this blog a Shub Navratras.It appears that this movement initiated is breaking down in its momentum and the purpose is achieved of the Powers to be at the CM's and DISCOM end.It is a good move to have a Maha RWA an UMBRELLA for all CAUSES as long as its 'A-Political' then would be interested but not if it has any political overtones of any kind Sir.
    Awaiting your CONFIRMATION.
    B.Rgds

    ReplyDelete