New Electricity Rates in Delhi to go Down by 10 to 20 Percent
by Surili Shah
Citizens of Delhi, reeling under price rise, could breathe a bit easy when the new power tariff comes into effect.
Sources said the revised tariff will make electricity cheaper by five to 10 per cent for domestic consumers and up to 20 per cent for industrial and commercial consumers.
However, the state government seems to be trying to throw a spanner in the Delhi Electricity Regulatory Commission ( DERC) decision to revise power tariff.
A day before the new power tariff was supposed to be announced, chief minister Sheila Dikshit decided to postpone it and instead asked the power regulator to assess the demands of power companies which are citing funds crunch to push for a tariff hike.
This forced the DERC to appeal to the solicitor general Gopal Subramanium who has now sided with the power regulators.
Subramanium has opined that such an intervention by a state government violates the Indian Electricity Act, 2003, a law that regulates the country’s power sector.
“ This is without doubt a serious fetter on a quasi- judicial function of the querist ( power regulator)… such direction is ultra vires and therefore void,” Subramanium wrote to the DERC that sought his opinion on the state government’s intervention.
The solicitor general has clearly indicated the announcement of this fiscal’s power tariff is already overdue by more than a fortnight and must be declared without further delay.
“ Section 64( 3) of the Act imposes an obligation on the commission to pass tariff orders within 120 days of receipt of tariff petitions,” Subramanium said.
Armed with Subramanium’s advice — though it doesn’t have any legal binding — the DERC now looks set for a face- off with the state government over the delay in announcing the revised tariff, sources said.
DERC secretary Amarendra Tewary has written to state power secretary Rajendra Kumar informing him about the solicitor general’s advice.
“ In view of the opinion of the Solicitor General… it is advisable to issue the tariff orders… without any delay,” Tewary’s letter read.
But Kumar said, “ I have nothing to say. We have asked the regulator for a statutory advice on the issues raised by the power companies and we are waiting for it.” While issuing Dikshit’s order on May 4, Kumar had said the Indian Electricity Act allows a state government to issue directions to the power regulator, including those related to tariff.
However, Subramanium observed that fixing tariff is the power regulator’s quasi- judicial right and directions issued by the Dikshit government under Section 108 of the Indian Electricity Act to stall it affects the regulator’s professional ability.
“ The querist ( power regulator) must therefore respond appropriately to the state government and proceed to issue the tariff orders in respect of the three private discoms,” Subramanium wrote in his reply.
The solicitor general’s opinion on the standoff also offers the regulator a long handle to offer its statutory advice to the government on its own terms.
While seeking Subramanium’s opinion, the regulator had contended it would have to have details about this year’s tariff if it were to offer statutory advice.
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