Contrary to their claims of incurring losses owing to no hike in power tariffs this year, Delhi’s distribution companies are in fact earning surplus revenue.
Latest data with the Delhi Electricity Regulatory Commission (DERC) revealed that the discoms are pocketing a sum of Rs. 445 crore extra as revenue from its consumers.
According to the power regulator, discoms are actually never going to run into losses as the ‘load growth’ or the number of consumers taking power connections is increasing by an average of eight per cent every year in the Capital.
Further, an audit carried out by the commission on the capital costs of the discoms has exposed a few discrepancies in their infrastructure development claims, which once completed would further imply additional revenue.
Out of the four distribution companies, Tata Power Delhi (TPDDL), which supplies power to North Delhi areas, has the maximum surplus revenue amounting to Rs. 323 crore. It is followed by BSES Rajdhani (BRPL) with Rs. 92 crore and BSES Yamuna (BYPL) with Rs. 37 crore.
The New Delhi Municipal Council, which supplies power to Central Delhi, has the lowest surplus earning of Rs. 8 crore.
“The primary reason for not increasing tariffs is the revenue surplus that is with the discoms. This surplus will further help to liquidate the principal amount of the accumulated revenue gap,” said P.D. Sudhakar, chairman, DERC. The accumulated regulatory assets or past costs of the discoms have already reduced by Rs. 2,000 crore in one year.
The commission claims the reason for such liquidation of revenue gap is broadly on account of true-up of past period based on de-capitalisation, actual equity, and penalties imposed on the discoms to the tune of Rs. 600 crore. The discoms have been fined for at least five violations, including accepting cash for bills over Rs. 4,000, delay in completion of GIS mapping, and not achieving AT&C loss targets.
The three discoms had collectively sought a revenue requirement of Rs. 21,763 crore in their tariff petitions for financial year 2015-16, but the DERC allowed only Rs. 19,115 crore.
