Dear DERC, You allowed 6% PPAC ...... DOES THE BALANCE 12% become Regulatory Assets ?

The Secretary,

Delhi Electricity Regulatory Commission,

C-Block, Malviya Nagar, New Delhi.

Madam,

The News Reports say that DERC has approved PPAC of 4-6% against a demand of 18-20% by DISCOMS.

We the Consumers are aware of Fuel Charge Adjustment (FCA) that was approved after a Public Hearing in 2011 in which I too had participated. At that time we the consumers had stated that Quarterly Adjustment was welcome as the carrying cost could be saved.

Since then we have studied the process and notice total opaqueness and arbitrariness in determining Surcharge. What was meant to be FUEL CHARGE ADJUSTMENT has now been termed PPAC (Power Purchase Adjustment Cost).

The DISCOMS have been demanding upwards of 18%, at times even as high as 30% ..... DERC has at times allowed 8% or lower over the past three years, last year in Nov. 2014 DERC even withdrew the hike within 24 hrs, citing absence of documentary evidence submitted by DISCOMS.

This proves that there is some mechanism in place to determine Surcharge and as per DREC's mandate to work in the best interest of Consumers, every precaution is taken by DERC and DISCOMS are granted FCA after Due Diligence?

QUESTIONS ..... ?????

1. DOES THE BALANCE 12-14% become Regulatory Assets????

2. In the past how many times have DISCOMS agreed to what DERC has Approved and what has been the fate of Balance, was that added to Regulatory Assets?

3. When was the Mandate changed to recover COSTS OTHER THAN FUEL on a Quarterly Basis?

4. How is FCA and now PPAC calculated?

5. Who provides the Data the Purchaser, the Producer or the Transmission Company?

6. Is there an independent Body or Regulator who calculates these Costs and orders a Uniform Cost for all State and Private DISCOMS?

7. How many times in the past four years have the consumers been passed on the benefit, when Coal prices fall?

8. Has the Surcharge collected in the name of FCA / PPAC by DISCOMS been passed on to Power Producers?

Looking forward to an early response to the above questions and hope I will not have to resort to RTI.

Warm Regards,

Rajiv Kakria