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,” he tweeted.
Delhi govt stands with the people of Delhi in this hour of crisis. This relief in fixed charges will help lakhs of… https://t.co/ijExrSwGvr
— Arvind Kejriwal (@ArvindKejriwal) 1599479119000
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.
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 reduced rate of Rs 125/KVA/month as against the existing rate of Rs 250/KVA/month, the Delhi Electricity Regulatory Commission (DERC) said.
The total unutilised capacity during this period was 80 per cent, out of which, 84 per cent pertains to non-domestic consumers and 75 per cent industrial consumers, a Delhi government statement 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 reduced rate (Rs 125) against existing rate of Rs 250/KVA/month,” an order issued by the three-member DERC said.
The Commission observed that during the lockdown period (till May 30), 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 said.
The order basically talks about splitting the calculation of the fixed charges for industrial and commercial establishments in two parts, officials said.
“Suppose your sanctioned load is 10 KVA and your MDI (Maximum Demand Indicator) is say, 7 KVA. In such a scenario, 7 KVA will be billed at the rate of Rs 250/KVA and the remaining 3 KVA at the rate of Rs 125 /KVA,” they said.
The Commission decided to split the fixed charges for April and May, into two parts for industrial and non-domestic consumers, whose monthly Maximum Demand was less than the Contract Demand/Sanctioned Load, the order said.
“Fixed charges for billing demand up to Maximum Demand shall be billed as per existing rate of Rs 250/KVA/month; fixed charges for remaining billing demand (Contract Demand/Sanctioned Load minus Maximum Demand) shall be billed at 50 per cent of existing rate of Rs 125/KVA/month,” it added.
The DERC had received representations from various stakeholders, including industrial 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 subsequent two billing cycles.