All India Power Engineers Federation (AIPEF) submitted a memorandum to Arvind Kejriwal demanding cancellation of license to Delhi Discoms. AIPEF Secretary General Shailendra Dubey assured Kejriwal for an all out support in improving the power position of Delhi and in reducing high tariffs. He was accompanied by Mahesh Chand, President and Satya Pal, General Secretary of DVB Engineers Association.
Memorandum highlighted the gross irregularities of private Discoms in many aspects mainly on account of very high cost power purchase. Average power purchase cost shown in the tariff petitions is highly inflated. It is Rs. 4.99 per unit in Delhi while the same is Rs. 3.99 per unit in Uttar Pradesh.
Excess amount claimed in the ARR therefore is approximately Rs 2500 Crore in the current year. During the last 10 years it may come out to the tune of more than 20000 Crore, which is sufficient to supply free electricity for one year in Delhi.
Satya Paul said that the fixed charges levied should be removed and replaced with minimum guarantee charges as were being levied earlier. The levy of fixed charges claimed by Discoms and approved by Commission were justified with the pleas since companies had incurred huge expenditure on infrastructure.
Companies are selling surplus power at very high rates to other states, though they got at a very low rate from excess central allocations, but profit is not passed on to the consumers as per ARR submitted by companies. Power purchase cost from Rithala plant as shown in the ARR for 2012-13 was 181 Crore and that for 2013-14 was 176 Crore, while it was not generating power since installation in 2009.
In May-2010, the then DERC Chairman recommended overall tariff reduction by 23% but instead of accepting the recommendation of DERC, tariff has increased thrice. There are sufficient grounds for reducing domestic tariff by 50%.
AIPEF demanded the physical audit /verification of all the accounts of Discoms. The Discoms must be brought under the ambit of RTI. In terms of policy directions, Companies are not only claiming 16% guaranteed return on their expenditure incurred towards taking over the existing infrastructure from DVB and but also depreciation.