As Delhi Electricity Regulatory Commission (DERC) goes through a complicated phase with delayed orders of tariff revision and the appointment of chairman in jeopardy, discoms are looking at other avenues to increase their revenue.
The capital’s power regulatory body has proposed changes in its regulations to allow the discoms and Delhi Transco Ltd (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 DERC, the power utilities may be allowed to retain up to 60% of the revenue earned from other businesses such as consultancy.
Discom BSES has repeatedly asked the DERC to liquidate their regulatory assets which they claim have touched 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.
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% of the revenue in case capital assets.
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