Delhi Electricity Bill To See Hike This Month? Here's What We Know

The PPAC or power purchase adjustment cost refers to the rise in fuel costs incurred by the generation companies which is recovered by discoms from the consumers.

The United Residents of Delhi slammed the move as arbitrary. 

Source : Tata Power Electricity News

The electricity bills of people in Delhi is set to see an increase of 7-10 per cent in the May-June period due to revision of PPAC charged by the discoms, officials said on Sunday.

The PPAC or power purchase adjustment cost refers to the rise in fuel costs incurred by the generation companies which is recovered by discoms from the consumers. 

PPAC is calculated as the percentage of fixed charge and energy charge (units consumed) components of the electricity bill, news agency PTI reported. 

The Delhi Electricity Regulatory Commission (DERC) in its separate orders earlier this month allowed the three discoms to recover the PPAC of third quarter of 2024-25 in the May-June 2024 period. 

The PPAC allowed are 7.25 per cent for BRPL, 8.11 per cent for BYPL and 10.47 percent for TPDDL.

However, there was no reaction available from the discoms on the increase in PPAC allowed by the DERC. 

The United Residents of Delhi (URD), an umbrella body of residents welfare associations in the city, slammed the move as arbitrary. 

"The process under which PPAC charges have been imposed on the people of Delhi by DERC is legally wrong," a statement from URD general secretary Saurabh Gandhi said. 

No reaction was immediately available from the DERC over the allegation. 

"For the last several years, the Commission has been benefiting the power companies from other items. Now we had great hope from the Commission that has been formed that it will complete the work of tariff determination by following the prescribed procedure, but this Commission conducted a virtual public hearing where not enough time was given to the stakeholders to state their case," Gandhi claimed. 

"It is also a fact that the PPAC claimed by various discoms and the PPAC awarded by DERC is different. For BRPL it is 7.25 per cent, for BYPL it is 8.11 per cent and for TPDDL it is 10.47 percent," he said. 

"Since the cost of fuel surcharge under u/s 64(4) is almost the same for all discoms, the percentage differential tariff should have been the same," Gandhi added. 

Discom sources defended the PPAC and said that it was in line with the DERC's regulations orders issued in different time periods for different discoms. 

The PPAC is recovered to ensure timely pass through of power purchase cost, which is dependent upon the coal and gas prices, to the consumer.