DERC acting in favour of discoms, allege consumers

The RWAs particularly targeted the Delhi Electricity Regulatory Commission’s decision to act ‘unilaterally’ on the issue of regulatory assets of the discoms. Regulatory assets are recognised but unrecovered revenue of the discoms.

The power regulator of Delhi was in the firing line during a public hearing for the annual tariff revision on Wednesday with most of the consumers and residents’ welfare associations alleging it of acting in the favour of the power distribution companies. The RWAs particularly targeted the Delhi Electricity Regulatory Commission’s decision to act ‘unilaterally’ on the issue of regulatory assets of the discoms. Regulatory assets are recognised but unrecovered revenue of the discoms.

The process of taking people’s opinion by the Commission on tariff revision through a public hearing is an annual exercise. But this time it turned stormy not just due to RWAs’ criticism of the DERC but also because of a protest by the Congress.

Delhi Congress leader Mukesh Sharma, along with other party members, shouted slogans against the BJP Government at the Centre over power crisis in the Capital for the past few weeks.

The party demanded that the power regulator forego the bill of first 15 days of June because of the inconvenience caused to consumers by the “inefficient” Delhi administration and power department.

United Residents of Delhi general secretary Saurabh Gandhi alleged that the DERC was taking measures which benefited the discoms and not the consumers. He said that despite the fuel cost coming down in 2012-13 as compared to 2011-12, the tariff was not reduced by the regulator and instead increased rates were levied on the consumers.  

He alleged there were repeated complaints from the CAG that the discoms were not cooperating and the regulator did not respond to them.

The DERC has recognised regulatory assets of Rs.11,00 crore for 2011-12. If one includes 2012-13 and 2013-14, regulatory assets for the discoms would shoot up to Rs.20,000 crore. RWA bodies told the DERC that regulatory assets were “trumped up” burden on them.

Rajan Gupta criticised the DERC for taking “unilateral” decisions on regulatory assets and making consumers pay without taking them on board.

V.K. Malhotra, a senior resident of the Capital and a regular participant in the annual tariff revision public hearings, argued that there should not have been any regulatory assets of the discoms. They should have been paid back much earlier and not have been carried over, he added.