Delhi residents may get a shock, Rekha government may increase electricity rates from April

New Delhi: The coming times may be a bit expensive for people living in the capital Delhi. A big question has started arising regarding electricity bills – are the rates going to increase soon? The discussion has intensified because the government is preparing to pay the pending dues. If this happens, it can directly impact the pockets of common consumers.

According to sources, the Delhi government is considering changes in electricity rates from April. The main reason for this is the huge dues to be paid to the electricity distribution companies (DISCOMs), which is said to be more than Rs 38,000 crore. The government says that it is also planning to provide subsidies to reduce the burden on consumers, so that the increased rates do not directly affect the people.

Effect of Supreme Court order

In August last year, the Supreme Court had given a big decision regarding three private power distribution companies of Delhi (BRPL, BYPL and TPDDL). The court had directed that an amount of approximately Rs 27,200 crore, including interest, should be returned to these companies within seven years. After this order, there is now pressure on the government to complete this payment, for which increase in electricity rates is being seen as an option.

How much is owed to which company?

According to Delhi Electricity Regulatory Commission (DERC) data, the dues on different companies are as follows:
BRPL: Rs 19,174 crore
BYPL: Rs 12,333 crore
TPDDL: Rs 7,046 crore
All these amounts are related to the expenses which the companies had incurred for the supply of electricity, but till now they have not been fully recovered. This amount has become more due to increase in interest over time.

How will this money be recovered?

The court has directed DERC to prepare a clear recovery plan. This will also include correct calculation of interest and audit of the reasons for delay. It is likely that this amount will be recovered in the next seven years by adding ‘regulatory asset surcharge’ to the electricity bill. This means that gradually this additional fee may be added to the consumers’ bills.

There is a connection with the previous government

Regulatory assets are costs that are determined to be recovered from consumers in the future. There was no increase in electricity rates in Delhi in the last several years, due to which this arrears kept increasing continuously. DERC said in January this year that total regulatory assets have reached Rs 38,552 crore. This is the reason why now the possibility of increase in rates is being expressed.