As of 1st September 2017, the electricity consumers of Delhi are finding themselves with a marginally lighter wallet. After two years of silence, the Delhi Energy Regulatory Commission (DERC) has decided to increase electricity prices-though marginally. The money raised from this exercise will be used for the pension trust of former Delhi Vidyut Board employees.
Earlier this year, we created a blog post on how to read one’s own electricity bill. To refresh your memory, please refer to this. In a nutshell, there are four key components to an electricity bill:
- Fixed Charges
- Energy Charges – per unit
- 8% Cess (expected to be dissolved after 3 years)
- 5% electricity Tax
The DERC has adopted a two-pronged approach to altering the electricity bill structure and under this new regime, changes will be seen in:
- Fixed charges, which will be altered based on sanctioned load
- 3.7% additional surcharge, which will be uniformly imposed across board
The 3.7% surcharge is over and above the 8% cess being levied currently for liquidating regulatory assets – a euphemism for charging consumers for the losses made by DISCOMs in the past. The state government as well as the DERC have been advertising that per unit charges have not changed. But this 3.7% surcharge will effectively result in consumers paying more with each additional unit.
What are the changes in fixed charges?
Fixed charges for consumers with 1KW sanctioned capacity will reduce by 50% from Rs40 to Rs20. This step was taken to incentivize lower usage, especially during peak hours. For people having a 2KW sanctioned capacity, fixed charges remain the same at Rs40. Thus, almost 75% of domestic power consumers in Delhi, with 2KW sanctioned capacity or less, will not see an increase in their fixed charges.
As for the residents with 3-5KW sanctioned capacity, the earlier scenario of equal treatment will be discontinued. The status quo was a Rs100 charge for all capacity slabs. This has now been increased by Rs5 for 3KW, Rs40 for 4KW and Rs75 for 5 KW. The overall expected increase in bill would be 3.4%, 4.5% and 4.6% , respectively.
Why Go Solar?
It was only last Monday that the consultancy firm Bridge to India published an article on how the average clearing prices of power on the energy exchange was inching up. The reasons cited for this increase were all supply side, indicating that anything from scheduled maintenance exercises to shortfall in coal supply, can result in destabilizing the energy market. And today we are talking about how bureaucratic revisions in tariff structures can increase your power bills.
The sun has been powering earth in innumerable ways for millennia. Modern technology has succeeded effectively in harnessing the solar energy to produce reliable power. In order to escape the uncertainties associated with grid electricity, produce your own. Go Solar with Zunroof!
Do give our blog a read for all your solar related questions and check out other interesting updates on solar on our facebook page (facebook.com/zunroof).