NEW DELHI: In a major move, a high-powered Delhi government committee has recommended removal of chairman and two members of Delhi’s quasi-judicial power regulator DERC, holding that they totally failed to protect the interests of the consumers.
The one-member committee of former Delhi Electricity Regulatory Commission (DERC) chief Berjinder Singh was tasked by AAP government to bring out a white paper on the capital’s power sector.
In its report submitted to the government, the committee observed that when the power tariff should have been slashed between 2011 and 2013, the DERC hiked it several times overlooking consumers’ interest.
Alleging that there have been “serious omissions” on the part of the DERC, the committee called for “action for removal of the chairman and members who were parties to the tariff orders passed in the years 2011 to 2013”.
Interestingly, under Singh’s chairmanship, the DERC in May 2010 had proposed to cut the power tariff by 23 per cent citing healthy financial condition of the private power distribution companies but the move was stalled by then Congress government exercising a special power under Delhi Electricity Act.
Although DERC was strongly arguing for a cut in tariff, the three-member regulator, following retirement of Singh and subsequent appointment of two new members, effected a series of hikes.
Since 2011, the DERC is being headed by P D Sudhakar, a former Special Secretary in the Union Ministry of Corporate Affairs. The two other members of the DERC are J P Singh, a former Health Secretary in Delhi government, and B P Singh, a former director in NTPC.
Sudhakar and the two other DERC members chose not to react to Singh’s report.
The report said before ordering “hefty” increases in power tariff and creating a large regulatory assets, the DERC did not even verify genuineness of short-term power purchase by the discoms at rates higher than market prices.
“There should have been a case for reduction in electricity tariff during the years 2011 to 2013,” said the report which will soon be discussed by the Delhi cabinet.
The report, a copy of which is with PTI, said following numerous billing-related complaints, the Delhi government had asked DERC whether the billing software of discoms was checked but it refused to reply arguing that it was “quasi-judicial” body and will not follow such directives. Singh’s report also says that from financial year 2011 onwards, the average annual rates of short-term electricity purchased by the discoms has been “consistently much higher, often by more than 50 per cent” as compared to the average yearly rate of electricity sold in the Indian Energy Exchange.
Sources in the government said it will examine the report before taking a call on the recommendations. “Government is examining the white paper and is yet to take a call on accepting the recommendations,” a source said.
The Delhi government’s notification of May 2010, stalling the tariff order was quashed by Delhi High Court, which had described the intervention as “absolutely unjustified, unwarranted, untenable”.
Following the Delhi government’s intervention, the then DERC headed by Singh, had sought opinion of the then Solicitor General Gopal Subramanium on the issue who held the government’s directive “ultra vires”.
The DERC had hiked power tariff up to six per cent last month as it restored a surcharge to compensate the private electricity distribution companies for rise in power purchase cost.
It is likely to announce revised tariff for 2015-16 later this month and there has been indication that the rates may go up again.–PTI
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