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Despite hike in tariff, power is still cheap in Delhi

By Lalit K. Jha

NEW DELHI JULY 7 .The electricity charges for domestic consumers in the Capital continue to be the lowest in the region despite the recent 7 to 17 per cent increase in power tariffs announced by the Delhi Electricity Regulatory Commission (DERC) on June 26, it is officially claimed.

The low rates compared to the satellite townships of Noida, Ghaziabad, Faridabad and Gurgaon are due primarily to the massive subsidy of more than Rs. 2,600 crores given by the Delhi Government as per its power reforms programme. Notably, the cost of purchasing electricity or its generation is much more in the Capital than in the neighbouring States.

Under the new tariff structure enforced from July 4, people here would pay Rs. 175 for 100 units, while a resident of Ghaziabad or Noida in Uttar Pradesh would pay Rs. 241 for the same and those staying in Gurgaon, Haryana, are paying Rs. 322, it is claimed.

The lowest slab here is 0-100 units, whereas in the neighbouring States it is bifurcated into two slabs which is much more than 175 paise per unit in the Capital. While it is 263 paise per unit for the 0-40 unit slab in Haryana and 363 paise for the next, the rates for Uttar Pradesh are 190 paise and 275 paise respectively.

The rate for the 200-400 unit slab is 325 paise per unit, while in Haryana it is 428 paise. Although the tariff is 320 paise per unit for consumers falling in this category, the slight reduction is marginalised by fixed charge of Rs. 50-250 per month collected from the people depending on their load connection. In distant Maharashtra, consumers have to pay an extra 20 paise per unit as transmission and distribution loss (T&D) charge.

Power sector experts say Delhiites are paying less than their friends and relatives in neighbouring States because of the subsidy -- officially loan, only to be waived off later -- given by the Delhi Government to Delhi Transco. Had this not been done, people here would have to pay at least Rs. 5 per unit as against Rs. 1.75 now. In other words, the electricity rates for those consuming 100 units would have been Rs. 500 in place of the existing Rs. 175 if there was no subsidy element.

Interestingly, the Delhi Transco purchases electricity at a much higher rate than those of the neighbouring States. While the average cost of power purchase in Delhi is 203 paise per unit, it is 126 paise in Punjab, 202 paise in Rajasthan and 164 paise in Uttar Pradesh. It is also because Delhi's own generation is 17 per cent as against 59 per cent in Punjab, 40 per cent in Rajasthan and 51 per cent in Uttar Pradesh. As much as 83 per cent of Delhi's requirement is met through purchase of power from other sources, while for Punjab, Rajasthan and Uttar Pradesh, it is 41, 60 and 49 per cent respectively.

Incidentally, the DERC in its June 26 order observed that despite the fact that the peak load in Delhi normally coincided with peak in Northern Grid, load-shedding in some neighbouring States was more than that in Delhi. "This is because, the Transco has tied up with various sources including bilateral arrangements with the other States. This has improved the reliability of power supply in Delhi but at an additional cost,'' the DERC said.

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