Centre Blamed by Atishi for Power Tariff Increase

Delhi Power Minister Atishi has accused the central government of being responsible for a power tariff hike in the national capital. The Delhi Electricity Regulatory Commission (DERC) accepted pleas from power distribution companies to increase tariffs on the basis of the high cost of power purchase. Atishi stated that power consumers with monthly usage of over 200 units will have to pay more after an 8% hike in the power purchase adjustment cost (PPAC), but the increase will not affect consumers whose electricity consumption is 200 units or below. She alleged that the central government’s NTPC was selling electricity to Delhi at 25-50% higher rates than the DERC stipulated. Atishi also claimed that the Central Government’s failure to ensure sufficient coal production had caused India’s first coal supply crisis, forcing the use of imported coal that is ten times more expensive than the domestic variety. She called for an explanation from the central government as to why coal buyers were being forced to purchase imported coal at ten times the price of Indian coal. Discoms are allowed to increase or lower the PPAC for three-month periods. Atishi said that electricity prices had increased due to the central government’s mismanagement of the coal shortage. Meanwhile, the Delhi government administration claimed that the latest increase in power tariffs would not affect consumers. Under the Power Purchase Agreement, electricity prices vary based on seasonal fluctuations and quarterly reviews.