Delhi government's initiative, White paper attacks DERC

NEW DELHI: Delhi government's initiative to bring transparency into Delhi's power sector, a white paper, has called for removal of the present chairperson and members of the Delhi Electricity Regulatory Commission (DERC). The white paper commissioned by the government to examine the power situation in Delhi prior to the AAP government alleges that the DERC chairperson and members failed to protect consumer interest which constitutes misconduct under the Electricity Act. The white paper also says that the government failed to keep a check on the discoms' expenditure or high power purchase costs.

Earlier this year, the AAP government had decided to bring out the white paper under a one-time committee, headed by former DERC chairperson Berjinder Singh. While the report is not yet final, it has been submitted to the government for scrutiny . Sources in the government indicated it was yet to be discussed following which an action taken report would be formed. Premature findings of the report say that "there should have been a case for reduction in electricity tariff during the years 2011 to 2013 as nearly 80% of cost of distribution of electricity is power purchase cost."

The white paper states that following numerous billing-related complaints, the Delhi government had asked DERC whether the billing software of discoms had been checked by an expert from the body . DERC refused to reply, saying that it is a "quasi-judicial autonomous statutory" body . "Refusal of DERC to give a reply on merits clearly shows that before ordering hefty increases in tariff and creating a large regulatory asset which had the effect of virtually more than doubling the tariff from 2011 to 2013, it did not verify genuineness of the costly purchases of short term power by the discoms which were prima facie at prices much higher than market prices," the report says.

Singh's report also says that from financial year 2011 onwards, the average yearly rates of short-term electricity purchased by the discoms have been "consistently much higher, often by more than 50%" as compared to the average yearly rate of electricity sold in the Indian Energy Exchange.

The committee has concluded that it is under consideration of the government of NCT of Delhi as to whether the "serious omissions" on the part of DERC which resulted in its failure to protect consumer interest and calls for "action for removal of the Chairman and members who were party to the tariff orders passed in 2011 to 2013".