DERC proposes changes to keep greater non-tariff revenue
18/08/2016 10:33
The national capital's power regulatory body, DERC has proposed changes in its regulations to allow the discoms and DTL, which claim to be under financial stress, to retain a larger share of their non-tariff income. As per the draft regulations floated by Delhi Electricity Regulatory Commission (DERC), the power utilities may be allowed to retain up to 60 per cent of the revenue earned from other businesses such as consultancy. As per reports, discom BSES has repeatedly asked the DERC to liquidate their regulatory assets which they claim have touched around Rs 16,000 crore, pending dues that can be recovered by way of increased tariffs. This move by DERC is seen as an attempt to encourage non-tariff income. As per reports, the proposed amendment in the DERC (Treatment of Income from Other Business of Transmission Licensee and Distribution Licensee) Regulations, 2005, also states that the utilities will be able to retain 40 per cent of the revenue in case capital assets (advertisements on electricity poles) are used to earn that amount, as against 20 per cent allowed currently.
