DERC reduces power tariffs for consumers including delhi metro

ravi2710 | March 29, 2018 | 0 | Delhi Metro , DMRC

NEW DELHI: Delhi has reduced electricity tariffs for consumers across all categories by up to 32%, becoming the first state to cut power tariffs for the next fiscal.

Delhi Electricity Regulatory Commission (DERC) had kept power tariffs unchanged in the last three years since Arvind Kejriwal-led Aam Aadmi Party (AAP) came to power. In its tariff order for 2018-19, the commission has reduced electricity prices for domestic power consumption of up to 200 units per month by Re 1per unit to Rs 3 per unit.

Domestic power consumers consuming 200-400 units of electricity per month will pay Rs 1.45 per unit, 32% lesser at Rs 4.50 per unit, while those using 400-800 units will be charged Rs 6.5 per unit, down from Rs 7.30 per unit now. Though the regulator has substantially raised fixed charges across all categories, the net impact of tariff revision will be positive for consumers.
For example, an average middle class consumer earlier paid Rs 2,415 per month for 400 units of electricity consumption, including a fixed charge of Rs 35. From April, his monthly bill will come down to Rs 1,940 including Rs 140 fixed charge.

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Tariffs for non-domestic, industry and other category consumers have also been reduced. For industrial consumers including airport operator DIAL, the tariff has been fixed at a flat Rs 7.25 per unit in the next fiscal. The order, however, impacts the industrial consumers’ ability to purchase electricity from sources other than the Delhi discoms.
Industrial consumers have the right to choose their suppliers but have to pay fixed costs to discoms irrespective of their purchase. Imposition of high fixed costs will deter them from making purchases from exchange or bilateral contracts. Tariffs for Delhi Metro Rail Corporation (DMRC) and Delhi Jal Board have been reduced to Rs 5.75 per unit from Rs 6.10 and Rs 8, respectively. Among the states that revised power prices for 2018-19 in the last three months, Delhi is the first to slash tariffs.
Bihar raised power tariff by an average 5% for next fiscal year, while Mizoram increased those by about 5.9%. Uttarakhand announced an about 2.4% hike in its electricity rates, while Manipur raised the tariffs by 7.2%. Industry experts said electricity tariffs will have to be revised upwards for 2018-19 given a rise in coal prices and general inflation.
While the three private discoms and the New Delhi Municipal Corp (NDMC) in their separate tariff petitions claimed aggregate revenue requirement of Rs 24,313 crore for 2018-19, DERC approved ARR of Rs 20,946 crore.

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