Electricity tariff hike looms as R-Infra's Discoms, BSES Rajdhani Power Ltd. and BSES Yamuna Power Ltd., get Rs 2,200-crore relief

NEW DELHI: An appellate tribunal has awarded 2,200-crore relief to two of Reliance Infrastructure's subsidiaries that distribute power in Delhi, raising the possibility of a tariff hike.

The Appellate Tribunal for Electricity has told the Delhi Electricity Regulatory Commission to clear the dues of BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd, which may ultimately get to charge more from users. The tribunal rapped the commission for making unrealistic assumptions while deriving the tariff for 2008-09.

The tribunal order last week comes as a big respite for the cash-strapped distribution utilities, which claim to be losing 8-9 crore a day on account of inadequate tariffs. "The per-unit electricity cost has increased by 60% over the past three years," BSES Rajdhani chief executive officer Gopal Saxena said.

Commission chairman P D Sudhakar said all judgments, including the recent one, would be taken into account before determining the tariff for the present year. The tariff order is likely to be issued in a month.