Date:27/06/2006 URL: http://www.thehindu.com/2006/06/27/stories/2006062715590400.htm

New Delhi

RWAs against further rise in power charges

Staff Reporter

Demand to reduce the per unit rate from Rs.4.70 per to Rs.2.60

Demand to associate the RWAs with the tariff fixation process to ensure transparency

Private power distribution companies accused of large-scale malpractices

NEW DELHI: With the threat of another increase in electricity charges looming large, the Delhi Residents' Welfare Associations Joint Front, an apex organisation of RWAs, has demanded that while there should be no further increase in power charges, the rates should indeed be brought down to around Rs.2.60 per unit as against the average of Rs.4.70 per unit prevailing at present.

The Front has also demanded that the 10 per cent increase in power charges enforced and subsequently rolled back last year should be revoked and till then the subsidy should continue.

Also, it has demanded that the RWAs be associated with the tariff fixation process to ensure transparency.

Accusing the Capital's private power distribution companies of large-scale malpractices, the Front said they should be held responsible for their failure to curb power thefts during transmission and until then the losses being incurred due to the thefts be borne by them. It also demanded that the licences of erring discoms be cancelled and the public grievance redress mechanism be strengthened.

Stating that following protests by RWAs the 10 per cent hike in power charges announced last year had to be withdrawn, the Front said it was unfortunate that the Delhi Electricity Regulatory Commission which fixes the tariff was again yielding to pressure from the discoms to effect yet another increase in charges.

Recalling that Chief Minister Sheila Dikshit had stated at the height of the agitation by power consumers last year that the tariff hike would not be an annual feature, it said DERC had yet again initiated action for a hike. Asserting that there was no transparency in determination of tariffs by DERC, it said DERC even lacked the technical know-how to analyse the annual revenue requirement (ARR) reports running into nearly 10,000 pages. As such, the Front said DERC has to go largely with the proposal of the discoms for deciding the tariff.

Holding that tariffs should be fixed on the basis of average procurement price plus reasonable distribution cost , the Front said the consumers in Delhi were already paying power tariff on a much higher side.