New Delhi
Electricity prices may increase in the country’s capital Delhi. The Supreme Court has given permission to raise electricity rates in Delhi in an important decision. This decision is related to the outstanding payments that power distribution companies were to meet the government.
What are the conditions of the Supreme Court?
The Supreme Court has placed some important conditions, approved to increase electricity prices. The court said that the increase should be Reasonable and Affordable. Apart from this, prices should not exceed the limit fixed by the Delhi Electricity Regulatory Commission (DERC). The court has directed the DERC to prepare a wide roadmap, in which it should be explained how, when and how much will be increased. According to the report, these increased rates will apply to all types of consumers – personal, residential, commercial and industrial.
Other states will also affect
This decision of the Supreme Court is not limited to Delhi only, but it can also affect other states across the country. Actually, this case was about the outstanding payments of regulatory assets of power distribution companies. The court has directed to repay all pending payments within the next four years. This means that in the states where these payments have been stuck for a long time, electricity rates may increase in the coming four years. Regulatory assets mean the outstanding payments that power distribution companies demand in lieu of power supply in states or union territories.
