APTEL Directs DERC to adjust the PPAC (Hike in Tariff)

The Appellate Tribunal for Electricity (APTEL) in its judgment dated 25th May 2015 has directed the DERC (Delhi Electricity Regulatory Commission) to determine the Power Purchase Adjustment Cost (PPAC) for the 3rd and 4th quarter of the previous financial year (FY 14-15).

The Judgement came after Tata Power Delhi Distribution Ltd. Filed a petition in the tribunal requesting for directing the DERC to implement the PPAC for 3rd and 4th quarter of Financial Year 2014-15 immediately.

The tribunal after hearing both the parties, in its summary stated that:

“In the hierarchy of the Courts, there is a committing of discipline and such discipline should be maintained by all, otherwise that would lead to chaos in the whole Country particularly, in the Power Sector if such trend of slackness or arbitrariness is allowed to the State Commission like DERC in the present case”.

And the judgment:  

“We direct the Delhi Commission to determine the PPAC for the above said 3rd and 4th quarter within three weeks from today otherwise face the consequences and action will be taken by this Tribunal”.

This decision of APTEL has come as a relief for the distribution licensees, who have been facing financial crunches and revenue gaps. This move will result in increase in tariff hike in the state. The capital is likely to see tariff hike of 5% to 20%.

The order can be reached here.

Related article on Indian Express and NDTV

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