A ruse for raising power tariff, says BJP

Charging that the Capital’s three private power distribution companies were making huge profits but showing losses through manipulation of accounts, Delhi BJP president Harsh Vardhan has demanded that the Delhi Electricity Regulatory Commission (DERC) order a high-level technical enquiry into the Annual Revenue Requirements submitted by them for seeking yet another power tariff hike.

Dr. Vardhan said it was ridiculous for the discoms to state that they have been incurring losses for the past five years. “Nobody can carry on a business while continuously suffering losses for five years,” he quipped.

The BJP leader also charged that these companies were showing increased “losses” by making forged purchases from their group companies: “The purchases have been shown from the companies of the same group and a probe into all these matters is necessary.”

Dr. Vardhan said it was through the manipulation of accounts that these companies were showing losses every year to demand an increase in power tariffs. “During the five years of privatisation these companies have increased the power tariff three times,” he said, recalling how on the fourth occasion the tariff hike had to be revoked in view of massive public outcry. But even then, he said, while the increased tariff was withdrawn, the Delhi Government gave in to the demands of the discoms by providing them subsidy.

The BJP leader said this time all the three discoms have sought an 8.5 per cent increase in the power tariff from DERC. Stating that due to increases in power tariffs in the past people do not have ample trust in the Government and DERC that they would protect their interests, Dr. Vardhan said a high-level technical enquiry should be ordered into the accounts of these companies.