Saturday, 16 March 2013


New Delhi, 16th March, 2013. Once again the DERC has invited comments on ARR submitted which is precursor to hike power tariff in the near future.
In a letter written to the Chairman of DERC P.D. Sudhakar, BJP Delhi Pradesh President Vijay Goel has raised serious questions on submission of fudged data of the DISCOMS and has sought for reply from the Chairman, DERC within next 4 days, otherwise the party workers shall be left with no other alternative but to Gheraoe DERC office on the 21st March, 2013. DERC, DISCOMS and Government of NCT of Delhi are collectively conniving to hike power tariff at the instigation of Chief Minister Sheila Dikshit.

Shri Goel said that during the period of 18 to 24 months tariff has been increased by only 6 percent power in Gujarat but how power tariff has been increased by 59 percent in Delhi whereas in Delhi there are no farmers who have been provided subsidized power in Delhi?

Shri Goel said that on the one hand Lt. Governor said on the floor of the assembly that there has been profit of Rs. 30 thousand crores due to the privatization of power and on the other hand power tariff has been increased 8 times. The DERC is also favoring for bailout package of Rs. 20,000 crores otherwise there will be power cut in Delhi.

After deliberations with various RWAs and NGO ‘Chetna’, Shri Goel has demanded the reply of following questions:
  • Before fixing power tariff has the commission asked the Discoms:- 
  • What type of power (hydle, hydro, thermal) and the source from which the same is being purchased
  • Has the commission asked the Discoms that how much power they shall supply to the domestic consumers and how much to the commercial consumers (Shopping Mall, Multiplex)? 
  • The reason is that during the last few years the power consumed by domestic consumers has increased marginally whereas there is substantial increase of consumption of power by the shopping malls and multiplexes. DISCOM purchase costly power during peak hours to meet the higher requirement by this category, burden of which is passed on to the domestic consumers. 
  • According to Central Electricity Act, 2003, Section-62 power tariff should not be increased by more than once in a year. But last year DERC unilaterally, despite objections from the activists changed the slab twice due to which people consuming power more than 400 units had to pay more. How it was allowed against this provision? 
  • According to National Tariff Policy, the consumers should be supplied power at reasonable rates and there should be competition among the power companies so that the consumers may benefit. 
  • Did the commission try to find out the reasons for the loss declared by the Discoms and the reason of their bad financial conditions, when as per record submitted with Power Finance Corporation all the three DISCOMS have earned profits ? 
  • There should be provision for neutral for each meter of flats by advertised by the DERC to avoid recording of consumption due to residential backflow. DERC however forgot that the installation of Meters is the responsibility of the DISCOMS, who by design for reasons best known to them have installed common neutral in loop consequently the meters record higher reading shows on other meters. 
  • By fastening responsibility on the Consumer, DERC has just washed off its hand and the Consumers have of Delhi have been fleeced by an amount of Rs. 4,500 crores in the last 5 year. This amount of Rs. 4500 crores has been earned by the Discoms without supplying power. 
  • Did DERC ever publish its comments on ARR submitted by the DISCOMS in Public Domain about the issues that it has observed in the ARR presented by the DISCOMS that merit public debate during the Public Hearings and what action taken can be taken? The Consumers can provide the comments only when they are informed about what wrong has been seen. 
  • Why DERC did not follow the National Electric Policy 2005, in which it is obligatory on the part of the DERC to ensure that every house should be supplied power within the next 5 years which should be reliable and of high quality at reasonable rates? 
  • The question is that in many areas power is not being supplied many villages. Undeclared Power cuts and load shedding is also resorted to from time to time. 
  • Why DERC did not question the DISCOMS on its failure to install absolute earth potential on every third pole so that electric shock/spikes may be prevented. Non installation of the Absolute earth potential damages house hold equipments/gadgets and the consumers suffer. 
  • The DERC does not know how to reconcile the Financial accounts with Regulatory accounts then how it can assess the correctness of the claims made by the DISCOMS based on sucvh accounts.
  • DERC must disclose the fact that in absence of Asset Register of two power companies BRPL and BYPL, how the capital expenditure and depreciation to both these DISCOMS was allowed and entertained in the ARR? Having not done so how the Power tariff can be fixed? 
  • This fact stands proved from the facts that tender was invited for physical verification Assets of the two DISCOMS from institute of Chartered Accountants specifying the time frame in which this exercise can be carried out and the cost thereof. 
  • DERC must disclose that why it did not conduct prudence check while discharging its duties from the year 2002 till date? How DERC did render a finding in each order passed by it that it has conducted prudence check in each order passed by it? 
  • The DERC has now in March 2013 invited tenders for checking balance work of ARR, true-up exercise and prudence check for previous years. This means while passing order on 13-07-2012 the accounts were not ready, true up was not conducted. If that’s true then on what basis DERC has recommended bailout package of Rs. 20,000 crores by way of statutory advise? 
  • DERC to disclose that why it has not taken on record the objections after examining the ARR, filed by the Consumers on record, sought for explanation from the DISCOMS and gave its own views/finding and why such deliberations are part of the orders? According to the rules for fixing tariff regulation, it is necessary to mention every objection in its orders and also comment on them. 
  • DERC must explain the rates at which power is purchased as per PPA and on emergency basis and the source of procurement by the companies because the rates for sale of power under long term PPA and also as per Indian Energy Exchange are much less than the rates of purchase declared by the DISCOMS. 
  • On the one hand PWC was the auditor of Reliance Infra and at the same time was Consultant of DERC assisting DERC in drafting the tariff orders, is it permitted under law? 
  • Is it true that one of the Member of DERC J.P. Singh was one of the Directors of three DISCOMS and had signed the balance sheet of these companies? How can he now examine the balance sheet in the capacity of the member of DERC for the purposes of true up exercise?

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