DERC Cuts Fixed Charge for Unutilised Capacity by C&I Segment

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In a relief to C&I consumers, DERC has slashed fixed charges for unutilised capacity of sanctioned load by Rs 125 for the lockdown months of April and May

In a relief to industrial and commercial (C&I) consumers, power regulator Delhi Electricity Regulatory Commission (DERC) has ordered for the slashing of fixed charges for unutilised capacity of sanctioned load or contract demand by Rs 125 for the months of April and May when the lockdown was imposed to prevent the spread of coronavirus.

Delhi chief minister Arvind Kejriwal had recently assured the industrialists and traders relief from fixed power charges.

Delhi govt stands with the people of Delhi in this hour of crisis. This relief in fixed charges will help lakhs of people to face hardships caused by Corona. pic.twitter.com/1DPwVOWXYc

— Arvind Kejriwal (@ArvindKejriwal) September 7, 2020

Delhi Power Minister Satyendar Jain also welcomed the move. “This will be a huge relief for non-domestic and commercial users. The expected impact of the said waiver is around Rs 160 crore. The move will benefit around 44,000 industrial consumers and around 10 lakh non-domestic (commercial) consumers,” he said.

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The fixed charges for the unutilised capacity for April and May 2020 (Contract Demand/Sanctioned Load – MDI) for eligible industrial and non-domestic consumers shall be billed at a reduced rate of Rs 125/KVA/month as against the existing rate of Rs 250/KVA/month, the DERC said.

“The Commission is of the view that in order to avoid hardships to eligible industrial and non-domestic (commercial etc) consumers, the fixed charges for the unutilised capacity (Contract Demand-Maximum Demand) during April and May, may be billed at a reduced rate (Rs 125) against existing rate of Rs 250/KVA/month,” an order issued by the three-member DERC stated.

The Commission also observed that during the lockdown period (till May 30), the majority of non-domestic and industrial consumers did not use their system to the contracted capacity.

“However, the fixed charges at the applicable rate have been billed to them based on the billing demand, as per DERC (Supply Code and Performance Standards) Regulations, 2017,” it added.

The total unutilised capacity during this period was 80 percent, out of which, 84 percent pertains to non-domestic consumers and 75 percent industrial consumers, a Delhi government statement said.

The DERC had received representations from various stakeholders, including industry associations and non-domestic consumers, for total or partial waiver of fixed charges during the current COVID-19 situation. The power Discoms have been directed by the DERC to adjust the fixed charges of April and May 2020 for eligible consumers in the subsequent two billing cycles.