Delhi CM hints at further increase in power tariff

Delhi chief minister Sheila Dikshit yesterday made a strong allusion to the possibility of a further increase in power tariff, on top of last month's 22 per cent hike in power tariff, saying cost of electricity procurement had increased sharply.

Justifying the demands of private power distribution companies for further hike in tariff, Dikshit said the rates in Delhi were much lower as against those prevailing in other states and people needed to understand that the cost of power procurement had risen significantly.

Replying to a specific question as to whether she was indicating that the tariff would go up, she said it could certainly.

When asked to comment on finance minister Pranab Mukherjee's remark at the National Development Council meeting that states should raise power tariff as distribution companies were facing financial difficulties, Dikshit said the statement accurately reflected the ground reality.

She said the centre had also admitted the reality and no government would like to increase the burden on people and the situation would have to be understood. She added that people would have to understand that cost of power had gone up.

After the announcement of a 22 per cent hike in tariff in August, which was put into effect from 1 September, the Delhi Electricity Regulatory Commission (DERC) had also said that there could be a further hike early next year.
Not satisfied with the hike, the discoms, especially Anil Ambani group company BSES, had demanded further increase in tariff to sustain their operations. Earlier, they had petitioned for a 60 per cent tariff hike, with the DERC.