DERC hikes power tariff in Delhi

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

Delhi discoms request to waive RPO of FY13

Delhi discoms have requested to DERC, to waive RPO targets of FY13. This request was put forward by discoms in their respective ARR petitions for FY15. The discoms contend that RPO regulations were introduced in Delhi only in October 2012 and as such there was little time in that year to meet the targets. The request can be read as (Petitioner – Delhi discom)-

“In this regard the Petitioner would like to submit that since the Regulations were issued in the mid of FY 2012-13 and the Renewable Energy Generation in Delhi was not fully developed, it was not possible to meet the RPO Targets during FY 2012-13. The Petitioner appreciates the fact that the energy generation through Renewable Energy Sources is required to be promoted by achieving the RPO Targets but at the same time the Renewable Energy Sector is also required to be developed in Delhi for fulfilment of RPO. The Petitioner has invited competitive bids for procurement of Renewable Power for both Solar and Non-Solar plants. The details about the bidding process and shortlisted bidders have already been submitted to the Hon’ble Commission. The Hon’ble Commission would appreciate the fact that RE Generation in Delhi is at nascent stage and will gradually develop in the coming years. The Petitioner in the meeting with the Hon’ble Commission held on October 9, 2012 also highlighted the difficulty in mobilising resources to meet the RPO announced by the Hon’ble Commission.”

Delhi discoms BYPL and BRPL mde reference to MERC’s order dated 7th August 2009, where the RPO targets from FY08 to FY10 were exempted due to shortfall in projected RE capacity addition.

While it is left on DERC to decide on this matter, any decision in favour of the request would further dent the ongoing positive enforcement efforts in other states.

The ARR petitions are available on DERC’s website.

Our recent blog-post highlighting projections by discoms for meeting RPO of Fy15 can be read here.

Relevant media article – Times of India.

Delhi discoms likely to comply with RPO by purchase of RECs

Delhi discoms – BRPL, BYPL and TPDDL have all filed a petition to Delhi electricity regulatory commission (DERC) for approval of annual revenue requirement (ARR) of FY 2014-15.

In terms of renewable energy resource capacity, Delhi is indeed poor as compared to other states. Therefore, to comply with RPO targets obligated entities in the state have lesser options than to buying RECs from the markets.

Following are the cost estimates for purchase of RECs submitted by discoms (for FY2014-15)-

BRPL – Rs 28.3 cr (Solar RPO) & Rs 90.7 cr (Non-Solar RPO)

BYPL – Rs 15.4 cr (Solar RPO) & Rs 56.2 cr (Non-Solar RPO)

TPDDL – Rs 17.54 cr (Solar RPO) & Rs 74.71 cr (Non-Solar RPO)

 

The petitions can be downloaded from DERC’s website.

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