Sheila Dikshit hints at power tariff hike in New Delhi

In more bad news for citizens in the city, chief minister Sheila Dikshit today indicated a possible hike in power tariff which is likely to be announced in the next few days.

"People in Delhi have money... They will have to pay more for power if they use more," Dikshit said replying to a question whether there will be any hike in power tariff.

Delhi's power regulator DERC is likely to announce a new tariff order within next one week for the year 2010-11. DERC chairman Berjinder Singh yesterday briefed Dikshit on the new tariff order.

Reliance Infrastructure-backed discom BSES has been pressing for a minimum 40% hike in power tariff arguing that cost of power in the open market as well as cost of distribution has increased significantly in the last one year.

Sources in the DERC indicate that there could be a hike in power tariff for those whose power consumption is very high.
   
Despite the demand by the discoms, the DERC last year had not increased power tariff in the city. But tariff had gone up after Delhi Government withdrew subsidy to certain categories of customers citing financial difficulties.
   
In the last six months, the city government has increased water tariff, hiked bus fares, withdrew subsidy on LPG cylinders and increased VAT on a range of items including diesel to mop up additional revenue.