New Delhi Domestic Electricity Consumers Hit by 26% Power Tariff Hike

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Already reeling under the effects of erratic electricity supply, a petrol price rise and high inflation rates, domestic consumers in the Indian capital of New Delhi were hit on Tuesday with a 26% hike in power tariffs. This is the fourth increase in tariffs imposed in 10 months and will become effective on July 1.

Delhi Electricity Regulatory Commission (DERC) Chairman P.D. Sudhakar said that the domestic rise for consumers was 24.15%, but an additional 8% surcharge that would be levied on the overall bill would effectively take the increase to 26%. The average rise would be 20.97% if the commercial and industrial sector were taken into account, he said. The domestic consumer will be hit the hardest by the priced increase.

In August 2011, the regulator upped the tariff by 22% for all categories of consumers. In February 2012, it went up again by 5% and another 2% in May to adjust the power purchase cost of the distribution companies.

Sudhakar, justifying the hike, said that the combined deficits of the three state distribution companies had been estimated at $1.07 billion, and there was no alternative but to raise the tariff. The DERC had imposed an 8% surcharge for losses incurred in the last few years by private distribution companies .

There will be an upward sliding scale of charges, increasing with units consumed with a charge of $0.11 per unit for monthly usage of above 400 units, up from the current $0.10 per unit.

Metro transport fares and water have had separate rates applied, which will probably lead to a rise in consumer charges.

The DERC announces separate rates for industrial units, agriculture and public lighting.

The New Delhi consumers are left paying a new premium for power supply--when, and if, it is supplied.

For related information, see June 22, 2012, article - Delhi Industrial Estates Powered Out and Additional Power targets in 32,000 Megawatt Jeopardy

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