Thursday, 20 December 2012
Companies preparing to hike power tariff
GOVERNMENT SHOULD NOT ALLOW HIKE IN POWER TARIFF WITHOUT THE AUDIT OF THE ACCOUNTS OF COMPANIES BY CAG – VIJENDER GUPTA
New Delhi, 20th Dec. BJP has demanded that until the accounts of all the three private power companies are not audited by the CAG, the DERC and Delhi Government should not consider their request for increasing power tariff by 3 to 12 percent in 2013.
Making this demand, BJP Delhi Pradesh President Shri Vijender Gupta told that the reality is that all the three private power supply companies are earning heavy profit for the last 10 years. Hence they are avoiding audit of the accounts by CAG. Delhi Government is hand in glove with the power companies. Hence even after the decision of the cabinet the accounts of the companies have not been audited by the CAG. After the directions of hon'ble High Court, Cabinet had approved a proposal for the audit by the CAG 6 month ago. But it has not been done till date.
Presenting their annual revenue requirement (ARR) for the year 2013 before the DERC, all the three private companies BYPL, Tata Power, BRPL have stated that their revenue deficit continues. Hence, it is necessary to hike power tariff. It may be mentioned that in July, 2012 the Government had allowed 34 percent increase in power tariff including surcharge on the recommendations of DERC. Besides hike in power tariff, the companies had requested DERC and the Government to levy fuel surcharge under power purchase cost adjustment. Now, the companies say that they are in revenue deficit of 12,000 crore rupees. They have to pay 12 percent interest on it. Hence hike is necessary.
Rejecting the claims of the companies, Shri Gupta has demanded the Delhi Government that the present contract with the three power companies for supply of power be cancelled and separate contracts for 11 districts be awarded to new companies. It will encourage competition among the companies and the people shall get power at low costs. He told that at the time of privatisation, the line losses were about 49 percent, which has come down to 7 to 11 percent.
After one percent decrease in the loss, the companies earn profit of 700 crore rupees. This profit is pocketed by the companies whereas the consumers should get relief in the power tariff. After privatisation, power tariff has been increased 4 times. Power load of the houses of the people have been increased 3 times higher. Fast reading meters have been installed in the house by force. Even after that the companies are complaining about loss and trying to increase power tariff every third month by hook or crook.