Tariff hike on the cards, rates may go up by 15 per cent

At a time when the inflation rate is going through the roof, Delhiites may get a double blow as a power tariff hike is on the cards. If sources in the power ministry are to be believed, formal announcement in this regard can be made anytime.

An increase in bulk supply tariff (BST), fuel price adjustment (FPA) and hike in coal prices, can force an upward revision of power tariff, not only by Delhi discoms but by all state power distribution utilities. The Thirteenth Finance Commission (TFC) report tabled in the Parliament on February 25 has also strongly recommended a substantial hike in the power tariff structure across the country including Delhi, which may see an increase of 15 per cent.

"Absence of timely tariff hikes has increased the gap and has impaired utility operations further. Some states have not raised tariffs for the past eight to nine years, despite increasing deficits," the report says.

"The announcement of a coal cess of Rs 50 per tonne in the Union Budget is set to increase the cost of power