DVB tariff hike, clarification sought

By Our Staff Reporter

NEW DELHI, APRIL 6. The Delhi Electricity Regulatory Commission (DERC) has asked Delhi Vidyut Board (DVB) to clarify its stand on a number of serious issues raised by the public on the tariff hike proposal for this financial year.

After receiving the DVB response, DERC is likely to come up with its ruling in about a fortnight. An overwhelming majority of the 540 responses, spread over 2,000 pages in eight volumes, generally objected to the DVB proposal for hike in the tariff and fixing the criteria for the next five years. It is merely an attempt to cover up the losses for which the organisation is responsible, they said.

Respondents also objected to DVB's comparison of its tariff structure with that of neighbouring States. ``It should be compared with other mega cities,'' respondents argued. As for reduction of transmission and distribution losses at the rate of two per cent per annum, a majority of consumers felt that this was not sufficient.

The respondents -- who included politicians, industrialists, non- governmental organisations, individuals, resident welfare associations and several government organisations -- have also raised strong doubts over the figures submitted by the DVB and stressed the need for an energy audit.

``Any tariff increase would only be unfair, violate the principles of natural justice and penalise honest consumers and spare the corrupt and inefficient organisation,'' argued the Tata Energy Research Institute (TERI).

In its official communication, DERC is understood to have pointed out that a majority of domestic consumers had expressed their reservations against the levy of minimum charges on the ground that such charges should be levied in the eventuality of there being surplus generation capacity.

As for response from the industrial consumers, the DVB has been asked to clarify its stand on their protest against the levy of demand charges along with minimum charges. They stated that in some neighbouring States, demand charges were not levied over and above minimum charges.

Some respondents suggested that bulk consumers be given concessional rates by the DVB. Both the Metro Rail and the Northern Railway demanded a substantial concession by stating that they were in public transportation and public service which needed to be subsidised.

Response has also been sought on the suggestion for increasing the SIP limit up to 200 KW on the ground that consumers were required to install a number of pollution control equipment under the direction of the Court which added to the connection load. Besides, the consumers also demanded simplification in the process of installation of diesel generators.

Representing the case of cinema halls, the National Association of Motion Pictures Exhibitors asked for granting them industrial status. The Association argued that cinema halls were required to provide prime commercial land for installation of DVB equipment. ``For this cinema halls should be compensated,'' it argued.

However, the strongest argument against the proposed tariff came from the hotel industry. Almost all five star hotels argued that if DVB's proposals were accepted then it would be easier for them to ``run their hotels on generator sets''.

Yet another group of hotels and restaurants contended that they were a service industry and as such should be considered under the domestic category. In another joint representation, the poultry farmers have said they should be included in the agriculture sector.

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