DERC Delhi Consumers to oppose Fuel Adjustment Cost
Delhi Electricity Regulatory Commission (DERC) consumer activists and stakeholders to oppose fuel surcharge in bills. The commission had invited public opinion on fuel adjustment cost (FAC) formula. Under this, any variation in fuel and gas prices in the market will be passed on to the consumers as fuel surcharge in their energy bills. The hearing for FAC is scheduled for August 1, while the new tariff is due to be announced by mid-August.
Rajiv Kakria, member of the Residents’ Welfare Association from Greater Kailash I, outlined a number of arguments ranging from differential tariff in the city to breach of contracts by some discoms in their failure to set up power plants to support the argument that the discoms provided poor services, and should not be given FAC. The commission had invited public opinion on FAC, which the discoms had asked for in their tariff petitions.
According to consumers, who invoked sections of the National Tariff Policy which talk about households having an uninterrupted access to electricity in the next five years, supply of reliable and quality power of specified standards in an efficient manner and at reasonable rates, and financial turnaround and commercial viability of electricity sector with full protection of consumers’ interest.Since discoms in Delhi have failed to make good these promises, they have no grounds to ask for fuel surcharge.
Anil Sood from NGO Chetna added, “In case of power purchased under barter system, spot purchasing, short-term and long-term contracts, fuel surcharge is not applicable. If it is applicable then the same treatment is also applicable to the sale of power. Before proceeding further, the commission is requested to provide complete details that have been given by the discoms, analyze them and then put them up with the commission’s observations for an informed debate, failing which, we shall have no other option but to seek judicial intervention in view of the order passed by the high court recently.”
Consumers further argued that the discoms had considerable surplus in hand to meet all sorts of contingencies for the coming few months of this financial year. Therefore, no action without proper discussion should be taken on this issue. “The fuel price surcharge is to be incorporated in the forthcoming MYT Regulations with effect from April 1, 2012 and should be part of the draft regulations,” said Sood.
Delhi electiricity, Delhi NCR, DERC Delhi, Fuel Adjustment Cost, Fuel price surcharge, oppose fuel surcharge in bills
