Thursday, May 28, 2015

5-20% hike in Power Bills ...... now pay for ACCHE DIN with INTEREST

Dear Friends,

Cut to July 16th 2014, with much fanfare DERC announced the Power Tariff, Delhites spared a Power Shock with a marginal increase of 3-5%, screamed the Headlines ..... somewhere in the Copy was hidden PPAC merged into Tariff so the new rates are Rs. 3.90/- to Rs. 4/- upto 200 units; Rs. 5.80/- to Rs. 5.95/- upto 400 units and so on adjusting the PPAC demanded by DISCOMS into various slabs.

The Magic of a new Govt. at the Centre was immediately felt and the promise of Acche Din kept ...... no Power Tariff increase this year. What the Lay Man on the street who does not participate in DERC Public Hearings is unaware of is that, DISCOMS that year had not asked for any increase in Tariff ...... they only wanted burden of their Regulatory Assets to be addressed.eel tho one can explain .... that story another day ......

I had protested then that instead of reducing Tariffs, DERC's merging of PPAC into Tariff is BACKHAND dole to DISCOMS and the Public will have to pay with interest PPAC at a later date ...... TODAY IS THAT DAY. (read attached news report)

Cut to November 15th 2014 ..... DERC announces increase in Tariff due to PPAC and within 24 hours withdraws the order citing a Technicality ...... the real reason was that Delhi Vidhan Sabha Elections were due to be announced any day ..... I had said then, Delhites will pay for it one day with interest ...... THAT DAY IS TODAY. (read attached news reports)

I reproduced below my email dated 14-11-2014 ....

Dear All,

Attached is an extract of my Petition dated 14-05-2014, wherein I had clearly stated that FCA is not calculated scientifically nor is it done in a transparent manner. DERC in its wisdom had merged FCA into Tariff in its July order ....... Now they have reintroduced it after conducting a SHAM OF A PUBLIC HEARING on 30-09-2014 ...... I had circulated my protest in my mail Delhi RWAs Boycott DERCs KANGAROO COURT on MYT ...... on 30-09-2014.


In my Petition to DERC in 2014 I had written ....... "Fleecing Public by allowing arbitrary FCA / PPAC: Power Purchase Adjustment Cost is the new tool to Loot public and give undue profits to DISCOMS in connivance with NTPC to cover for NTPCs incompetence, while DERC does not investigate the true value of FCA. It is to be noted that NDMC asks for just 0.86% FCA. Further DERC is allowing FCA as a percentage of Retail Cost where as FCA should be applicable on Production Cost only.

Has DERC ever tried to determine total component of Fuel Cost in the Production of Power? We believe it is not more than 15% ….. 23% in case of inefficient Plants, DISCOMS have demand a hefty 30% and manage to get 12%, where is the Rational? DERC has been allowing up to 8% as Fuel Charge Adjustment ….. we know that DISCOMS have not been paying their Dues to NTPC and others for the power, so where is the question of Fuel Cost Adjustment.

In a CERC meeting it was brought to light that NTPC has no scientific system of calculating fuel cost and the Power Producer ie NTPC itself decides how much should be the increased charge ..... ARBITRARY and protested by all DISCOMS.

DERC over time has blurred the line between FCA and PPCA, the EA provides for FCA to be adjusted quarterly and not any other Production Cost as that is a True Up exercise."

Now, DISCOMS have got a favorable order from APTEL armed with a Battery of Top Lawyers ..... had DERC taken Public Support and done some Homework and taken on Board similarly suffering State Electricity Boards and represented before the APTEL, the truth of PPCA and the Connivance of Power Generators and DISCOMS to fleece public, APTEL would have seen the matter differently.

Warm Regards,

Rajiv Kakria

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