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Delhi discoms build RPO compliance costs into their tariff

According to the most recent tariff orders, the Delhi Electricity Regulatory Commission (DERC) has allowed Tata Power Delhi Distribution Limited, BSES Yamuna Power Limited, BSES Rajdhani Power Limited, New Delhi Municipal Council to incorporate the cost of Renewable Purchase Obligation (RPO) for FY2013-14 in their tariff.

The details of their obligation are given below:

in MWh Tata Power BSES Yamuna BSES Rajdhani NDMC Total
Non Solar Obligation 342190 255070 454710 61956 1113926
Solar Obligation 14880 11090 19770 2964 48704

We see this as a good starting point. By including in its tariff order, a Discom’s is essentially starting to recover the cost of RPO as part of the tariff it charges. This should pave the way for RPO compliance (like in the case of Punjab). However, it is too early to count compliance by Delhi Discom’s as a certainty. Eventually, DERC will have to enforce compliance. We will come to know of that after March 2014. In the tariff order, the Discom’s and DERC are silent regarding the extent of compliance in 2012-13.