DERC bats for retail supplier to achieve govt’s universal service obligation

NEW DELHI: In a bid to provide electricity to every citizen at a regulated rate, the Delhi Electricity Regulatory Commission (DERC) has recommended that a retail supplier be identified to achieve the goal.

Citing a landmark judgment of Madras High Court that held electricity supply as a legal right of a person and its denial as a violation of human right, the DERC approach paper calls for identifying a retail supply licensee for the purpose of universal power supply.

The international practices for supply of electricity to the lower income group of consumers at affordable rates, cross subsidy among the different consumer category cannot be eliminated, it says.

“This would, however, call for identifying a retail supply licensee which may be among the existing distribution licensee, for the purpose of USO and ensure electricity at regulated rate to every consumer as mandated under the Electricity Act.”

The approach paper of the power regulator on tariff rationalisation recognises electricity supply to each citizen as a universal service obligation (USO) of the government.

The paper suggests that to attain the USO objective, a portion of cheaper source power plants may have to be allocated to the identified supplier as is being followed in Singapore.