Home / Politics / Policy /  Claim Check: Sheila Dikshit on Delhi’s power tariffs

Claim: The power tariff in Delhi is much lower than that in other metropolitan cities and even other cities and towns in the National Capital Region. The opposition is making false promises (about bringing rates down) as the tariff cannot be changed or amended by the government. The Delhi Electricity Regulatory Commission (DERC) has the sole right to decide the rates keeping in mind the input cost and other factors.

Who: Delhi Chief Minister Sheila Dikshit

When: At multiple venues through the year, including a public rally on 1 December

Check: She is wrong about the first but right about the second.

An analysis conducted by Deloitte for Mint assuming consumption of 300 kwh on a single-phase 4 kilowatt connection that includes fixed charges showed that only Maharashtra, West Bengal and Madhya Pradesh had higher retail tariffs than Delhi in 2013.

However, some states, including Delhi, have provided subsidies on the retail tariff lowering what is finally paid by consumers.

Tariffs are determined by the state electricity regulatory commissions’ orders. The tariff orders are required to be based on tariff petitions of the distribution utilities and their analysis by the commission. Users can weigh in at a public hearing on the tariff petition.

To be sure, the 2013-14 tariffs will be different, with distribution companies having been unbundled in several parts of the country and with multiple tariff revisions.

Source : Deloitte Touche Tohmatsu Research based on Tariff orders till year 2012-13

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