Delhi discoms pitching for 20% tariff increase

Reeling under huge losses, distribution companies in Delhi are looking for another rise of about 20 per cent in power rates in less than a year.

There was a 21 per cent rise in rates in September last year, but despite the increase, discoms, BSES and North Delhi Power Ltd (NDPL), have accumulated losses of about Rs 11,000 crore in the last three years.

Reliance group companies BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd account for around 70 per cent of the power distribution in Delhi city. Private discoms were asking for a 50 per cent increase in rates due to increase in power purchase cost, among other factors. The September hike came after rates were last revised in 2009.

“We are expecting a hike of 19-21 per cent in power rates in the next few months. We have asked DERC (Delhi Electricity Regulatory Commission) to look at all factors of cost. The tariffs have to be cost-reflective rise so that discoms stop bleeding,” BSES Rajdhani chief executive officer Gopal Saxena told Business Standard.

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