Date:08/04/2006 URL: http://www.thehindu.com/2006/04/08/stories/2006040815690300.htm

New Delhi

Power charges all set to go up in Delhi again ?

Gaurav Vivek Bhatnagar

Despite a subsidy worth Rs. 3,660 cr. to discoms

NEW DELHI: Power is all set to become more expensive in the Capital even though the distribution companies have technically not submitted any tariff increase proposal to the Delhi Electricity Regulatory Commission.

With the power sector in Delhi showing a revenue gap, experts insist that to offset the losses of Transmission Company (Transco) the rate at which power is supplied to the three distribution companies (discoms) would be raised and consequently the power tariff will also be hiked to bring the discoms out of the red.

While until now the three distribution companies -- BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power Limited (BRPL) and North Delhi Power Limited (NDPL) -- have together been subsidised to the tune of a whopping Rs. 3,660 crores since they took over in July 2002 and they have also reduced thefts, the power sector accounts are being manipulated in such a way that the tariffs would continue to head north.

But what has really perplexed experts is that while the efficiency of the discoms has gone up and the aggregate technical and commercial losses -- which include thefts -- have declined, still the tariff are going up constantly.

In the past three years the tariffs have increased by about 40 per cent.

And while last year in July the Delhi Government had subsidised the 10 per cent hike in the wake of pressure from the people, the term expires in three months from now after which the tariff would automatically go up.

"That no tariff proposal has been submitted is something which is said every time. However, the tariff proposals are not disclosed. And then due to the revenue gap, the regulator is left with no option but to increase the tariff," said Rajan Gupta, former member of the Delhi Electricity Consultative Council, adding that the problem lies in revenue realisation as there is no check of the Delhi Government on what is shown in the account books.