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DISCOMS claim that the Power Purchase cost has gone up substantially, which in fact over the years has substantially gone down.

Thanks to the 'unholy nexus' between the DISCOMS (power distribution companies), DERC (Delhi Electricity Regulatory Commission) and Delhi Government, the power supply to common man of the city over the last 15 years has turned out to be a tragic tale of "betrayal of trust" and "violation of all possible norms of governance". None has been spared from this betrayal which gets reflected in the hike in power tariffs. No less than 200% increase in power tariff in past 15 years and 72 per cent increase in last couple of years. The Delhi government has already approved through DERC another 300% increase in power tariffs but postponed it for few months fearing the backlash during the assembly polls.

If voted back to power, this Congress government will make you pay Rs.10 to Rs.13 per unit of electricity. DISCO MS minting Profits in the garb of lies and false accounts

Justifying hike in power tariffs, the DISCOMS claim that the Power Purchase cost has gone up substantially which in fact over the years it has substantially gone down. The fact is that DISCOMS buy surplus power by nefarious designs to sell surplus power to their sister concerns at lower rates. The loss thus accounted is passed on to the consumers and both DISCOMS & their sister concerns continue to make profit. The consumers pay additional Rs.2/unit for this extra electricity bought by DISCOMS. If carrying cost, administrative cost and interest is added then it would translate into Rs.3.50/unit, leading loss to the tune of Rs.16,091 crores, computed at average purchase rate declared by DISCOMS at Rs.3.80.

In 2009-10 DERC recommended for the abolition of fixed charges but the present commission has changed its mind. A monthly fixed charge on the basis of sanctioned load is being levied and recovered from all consumers irrespective of how much power they consume. Delhi Vidyut Board was charging minimum charges with one time security deposit but private distribution companies cleverly converted this to fixed charge and a result there is huge profit for the DISCOMS. Fixed charge on monthly basis is nothing but twice on the two different heads for the same thing.

Middle- Class worst hit under existing tariff slabs - In the new slab, if your monthly consumption goes above 200 units you would be charged Rs 4.80 per unit for the entire consumption as against previous practice of different rates for first 200 units and the next 200. Further there is discrimination between domestic and non-domestic consumers as regards fixed charges. On one hand where the tariff hikes for the domestic consumers is about 24%, the same hike for non-domestic consumers comes at 20%. With indiscriminate power tariff increase supported by Delhi government, the middle class continues to be affected adversely as normal household in Delhi consumes 300-400 units on monthly basis.

It has also come to light that the consumers are paying 25% to 40% higher bills without actually consuming the power. Experts have informed that this is due to 'Residual Backflow' caused by providing common neutral to all the electronic meters that are installed in series. Till date neither the Commission nor the DISCOMS have offered any clarification in writing despite having been asked for.

When Chief Minister stalled DERC's decision to reduce tariffs - In 2010 the then DERC Chairman Brijender Singh and Chief Minister Shiela Dikshit locked horns over tariff determination. Singh had rejected the claims made by DISCOMS of incurring losses as incorrect and informed that DISCOMS were overcharging the Delhi consumers to the tune of Rs. 300 crore a month and recommended government to reduce the rates. Despite Singh's recommendation, Chief Minister stepped in and favoring DISCOMS forced Singh not to release the tariff order. There was in fact a surplus of Rs.3,500 Crores with the DISCOMS but Dikshit ignored his recommendations.

As soon as Singh demitted office as Chairman the surplus of Rs.3,500 crores turned into a loss of Rs.7,000 crores and thus resulting into cumulative loss of about Rs.14,000 crores. Even today DISCOMS claim that they are incurring losses whereas the Balance sheets, filed with Power Finance Corporation, indicate that they are in profits. This means DISCOMS are preparing two sets of accounts one for Income Tax and another for DERC, which is nothing but a fraud.

The Delhi government's support to the DISCOMS can be further gauged from this simple fact also. As on date, New Delhi Municipal Council is providing electricity at the rate of 3.10 Rs/unit whereas DISOCMS - NDPL and BSES are charging 3.70 Rs/unit despite both buying electricity from the same generator at the same cost. The question is why are DISCOMS charging more when NDMC is charging less for the same electricity?

Promises made during privatization of power pending till date - In 2002, Delhi government dangled a carrot before the people that privatization of power will reduce reduction of tariffs in 5 years. They were assured that by 2005 just as in the case of mobile phones, consumers will be able to choose their power supplier which will lead to competition between them and thus reducing the tariff. No such thing happened because the DISCOMS have been given a monopoly of the clearly demarcated areas. The DISCOMS knowing the people have no choice to go, are indulging in arm twisting and blackmailing under a threat that NTPC will stop the power supply if their dues are not paid. Two DISCOMS claim that they are unable to pay as they have no cash, which is blatant lie.

Unpalatable hard facts about Delhi electricity at a glance

Privatization of Electricity was done in 2002 so that the distribution losses could be reduced resulting in reduction of tariff by 2005.

Instead of sharing the profits on account of reduction in loss with the consumers, the private power distribution companies have structured the balance sheets to show their own losses.

In 2010, Brijender Singh, the then Chairman, the Delhi Electricity Regulatory Commission found that distribution companies (DISCOMS) were making profits.

At the same time, the power companies projected losses of nearly 635 crores for the years 2010-11 and wanted power tariffs increased. The chairman of the DERC, however, found their profits would add up to nearly Rs 3,577 crores (around Rs 300 crores per month) and recommended tariff reduction by 23%.

But before he could issue the order, Delhi government intervened to help power companies and prevented Chairman, DERC from issuing the tariff order reducing electricity prices.

After Mr Brijender Singh retired as the Chairman of the DERC, the new chairman Shri P. D. Sudhakar increased power prices by 23% in 2011 and nearly 32% last year.

To justify the higher rates, these DISCOMS keep inflating expenses, power purchase price contrary to facts on record and in public domain and reporting losses and demanded financial bail-out packages.

But, the justification given by them for higher power tariff is a pure lie. According to CERC (Central Electricity Regulatory Commission) and NTPC records the DISCOMS buy more than 80% of the power at less than Rs 2 per unit.

At the time of privatization, consumers were assured that by 2005, they will be able to choose their power supplier and tariff rates will be reduced. No such thing has happened.

Till date, despite repeated demands by BJP, Delhi government has not allowed the CAG to audit the accounts of these distribution companies. (Despite cabinet nod approving the same in December 2011, Delhi government in last two years failed to even intimate LG about the approval or initiate proceedings in this regard)

BJP will not only get the accounts of these companies audited by the CAG but also slash the current power tariffs by 30 %

The Way Forward

BJP proposes 30% Reduction in Electricity Tariffs immediately after coming to power - this will be achieved by reducing the monopoly of the DISCOMS.

Power purchase agreements to be made public for introducing transparency – review existing PPAs

Molestation cases rose by 600 percent and eve-teasing cases by 700 percent.

Introduction of Competition - Currently the DISCOMS have cartelized and have monopolized the distribution of electricity. The BJP government would introduce competition among the companies which would eliminate monopoly of DISCOMS and help in reducing the increased tariff rates.

End monopoly and introduce open access system - Consumer may purchase power from any company that provides cheaper and stable power as is happening in Mumbai.

Curtailing unnecessary Purchase of Power - The DISCOMS are currently buying the electricity more than the requirement of Delhi and eventually consumers are bearing the cost of this extra electricity. All consumers are paying and will continue to pay Rs. 2/- per unit extra for this extra electricity bought by DISCOMS. We will reduce this unnecessary purchase of power which will reduce the extra burden on consumers. After adding the carrying cost the effective increase per unit would be Rs. 3.50.

Providing Separate Neutral to each Consumer - The current electric meters have the common neutral because of which the consumers are paying for the electricity which they are not using. It has come to light that the residents are paying 25% to 40% higher bills without actually consuming the power. BJP will provide the separate neutral to each consumer which will reduce the inflated bills.

Introduce Transparency in the Working of DISCOMS - DISCOMS lack the transparency in their working. BJP will bring in the transparency in the working of DISCOMS by CAG audit

Invite Competitive International Bids for DISCOMS - This will ensure the efficient energy distribution.

Control the Power Theft - The losses on account of electricity theft are routinely passed on to the customers in the form of higher energy charges. So by controlling the electricity theft we will reduce the electricity bills.

Bringing DISCOMS under RTI - DISCOMS do not come under RTI act. BJP government will bring them under RTI act which will make them answerable to the common people and also increase transparency in their working.

Accountable DERC - The DERC (Delhi Electricity Regulatory Commission) over a period of time seems to have lost its independence, autonomy and credibility. We will focus on strengthening the DERC by appointing the competent people as heads which will establish the control over DISCOMS.

Conduct Energy Audit - The purchase, supply and use of electricity by all the stakeholders are not transparent leaving immense scope for the DISCOMS to get away with power fraud. Conducting energy audit will clear this mess and differentiate between a common power consumer and an electricity guzzler.

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