DERC mulls new policy for power cos to meet demand

The issue of rising costs is also at the heart of the current stand-off between the discoms and the regulator,with the Delhi government choosing to back the power distribution companies. With the rise in coal cess,and more recently the hike in gas prices,discoms have upped their pleas about the business of supplying power becoming “unsustainable” under the current model.

Incidentally,the system being proposed has already been adopted by 18 states in the country. “If the system is adopted,it would required discoms to submit their expense reports every three to six months. Accordingly,the claims will be scrutinised and adjusted in the tariff for that year itself,” a senior official explained.

Experts believe this would be the best time for DERC to adopt this new system,which is likely to placate the discoms as well. “The Multi-Year Tariff regulations,which were to be effective for a period of four years,will end this year. Therefore,the DERC is probably in the process of framing new regulations,and can adopt the policy easily,” an official said.

One of the biggest benefits of this system,sources said,would be improved power infrastructure. The discoms,officials said,would be in a position to buy expensive power to ensure they meet the city’s rising power needs.

“Throughout last summer,at least one discom said it was unable to procure enough power for the Capital because it was too expensive. If the new policy is adopted,such excuses would become a thing of the past,” the official said.