DERC hearing is a sham, Delhi BJP to hold protest with RWAs

• Delhi BJP delegation to meet DERC to stop another power tariff hike
• DERC fails to give reply on critical issues, unholy nexus between Discoms, Congress Govt., DERC exposed : Goel

New Delhi June 2 : A delegation of Delhi BJP led by the state unit president Shri Vijay Goel will meet the Delhi Electricity Regulatory Commission members tomorrow on 3 June even as the party has announced that it will simultaneously hold a peaceful dharna along with Resident Welfare Associations and common people who are expected to gather at PHD Chambers of Commerce where the DERC has announced to hold hearing for infusing another hike in already skyrocketing power tariffs.

“It is clear that once DERC gives a go ahead for tariff hike the Chief Minister Sheila Dikshit might delay implementing it before assembly polls in a bid to deceive voters. But after DERC’s stamp of approval, the tariffs will be definitely hiked immediately after the polls. So the BJP will oppose this move of DERC,” Shri Goel said.

The BJP is of clear view that if unholy nexus between discoms, Congress government and the DERC can be broken, the power tariffs can be immediately brought down by 30 per cent and BJP is committed to do it, if it comes into power.

Shri Goel who had raised several questions about the dubious and anti-people policies on power tariff informed that the unholy nexus patronized by none other than the Chief Minister Sheila Dikshit stands fully exposed by a DERC letter letter dated 31st May, 2013 wherein for the first time DERC has made it public that it has recognized the regulatory asset of Rs. 3225.29 crores upto 2010-11 for BRPL only, for the year 2011-12 the figures are yet to be finalized. BRPL and its balance sheet has already considered regulatory asset of 5417.75 crores. When DERC had accepted Rs. 827 crores as regulatory asset of BRPL, the rates increased by 15%. If the DERC considers the regulatory assets of Rs. 2398 crores the rates will go up by 45% and in case DERC acknowledges the regulatory asset of 5417.75 crores the rates are bound to be doubled. .

Shri Goel was surprised that on the one hand the DERC admits that DISCOMS are purchasing power under long term PPA but on the other hand has allowed DISCOMS to purchase surplus power ranging between 56% to 84% in the coming three years without much increase in the power required to be purchased by the DISCOMS. The loss on purchase of surplus power by these DISCOMS shall be passed on to the consumers which work out to Rs. 3.50 per unit.

The review of DERC orders and Director Report indicate that BRPL did not achieve the targeted loss level. Going by DERC’s own submission till date the DERC has not recovered the amount on account of under achievement of losses for the last three years which works out to almost 400 crores.

Shri Goel was also surprised at the conduct of the DERC for holding the public hearing on ARR when the DERC has already written to the Central Government to give bail out package to the DISCOMS amounting to Rs. 20,000 crores. This public hearing is aimed at legalizing his own advise to the Central Government.

Shri Goel further said that when cost accounts are available with the company why DERC has preferred to ignore those accounts particularly when it cannot reconcile the financial accounts with regulatory accounts.

Both the DISCOMS are also showing abnormally high losses and when BJP raised this issue, the DERC has simply washed off his hands by saying that it has sought for explanation from the DISCOMS, which has been analysed and directions have been issued to them by DERC.

The fact remains no letter has been issued to any of the DISCOMS seeking explanation and no reply has been received from the DISCOMS then how and on what basis the directions have been issued by the DERC. It appears the whole exercise is nothing but sham.