Delhi Discoms are model of failure and irregularities: AIPEF

Vinod Kumar Gupta
Saturday, 24 July 2010
NEW DELHI: The privatised Discoms in Delhi are a model of failure and irregularities in power sector and these Discoms do not have any locus standi as their existence is against the law ‘ Shaliender Dubey Secretary General All India Power Engineers Federation said after the Federal Executive meeting.

Dubey further said that even the Delhi Electricity Regulatory Commission (DERC) has admitted that the companies have not been registered with Registrar of Companies, have not been notified, and are not legally the successor entities. The assets have not been transferred. The policy decision regarding DVB restructuring taken on November 22.2001 was valid up to 2006-07 only and after the expiry of 2006-07, the validity was not extended.

Padamjit Singh Chairman of federation Government of India is desperately keen to make the Delhi privatisation a show case of success and for this; it has allocated extra power to Delhi. As a result, Delhi is surplus and under draws power from the grid most of the time, thereby earning huge UI charges.

It may be mentioned that according to official record UI earning by Delhi Discoms as per the energy accounts issued by NREB/ NRPC were Rs 694 crore in 2006-07,Rs 1684 crore in 2007-08 and Rs 566 crore in 2008-09 , Rs 686 crore In 2009-10.

The DERC had concluded that due to the low cost of power purchase and due to the profit from UI, the benefits should not be retained / pocketed by the Discoms but passed on to the consumers through lower tariff. The DERC was about to issue the Tariff Order but the Delhi Government has severely undermined the independence of the regulator by issuing a direction to DERC restraining it from issuing the tariff order by which the tariffs would have been reduced.

K. Ashok Rao Patron of Federation observed that In Delhi CM was acting like the CEO of Reliance Discoms. The basic principle contained in Electricity Act 2003 that determination of tariffs should be independent of politics and Govt. had been violated.