DERC in its order dated 17th July, 2014, approved a tariff hike of 8.32% for three DISCOMs, namely BSES Yamuna Power (BYPL), BSES Rajdhani Power (BRPL) and Tata Power Delhi Distribution Ltd (TPDDL), while the tariff for NDMC has been hiked by 9.52%. Since Delhi has recently notified the open access charges in December, 2013 the tariff hike would increase the leverage to an open access consumer (1 MW and above) to procure cheaper power from the open market.

The other major features of the order include:

  • As a move to help DISCOMs to liquidate the principal of their accumulated deficit, DERC has decided to continue with the surcharge of 8% for all the four DISCOMs including NDMC.

ToD tariff extended for all consumers. This would enable utilities to adopt various DSM measures that would help in lowering the peak demand and thereby reducing costly power purchase.

  • Also an additional surcharge, varying from Rs 0.30/kWh to Rs 3.00/kWh has been levied on purchase of power through open access, there is still potential for an open access consumer in Delhi to purchase power through Power Exchanges such as IEX for six months in a year.
  • The purchases of energy from renewable sources through open access has been exempted from wheeling, transmission and additional surcharge. Thus, the open access consumers can avail green power to procure cheaper power. Many large consumers in Delhi have already started filing open access applications for availing open access.
  • It is anticipated that the recent tariff hike would act as a catalyst in promoting open access in Delhi and large industrial and commercial consumers would flock to PXs and bilateral transactions to reduce the impact of the tariff hike.

The orders can be accessed here.

Contributed by Mithun Dubey