New Delhi: Power bills for lakhs of consumers in the national capital are set to increase as the Delhi Electricity Regulatory Commission (DERC) has permitted power distribution companies to recover higher power procurement costs through an enhanced fuel and power purchase adjustment surcharge (FPPAS), commonly referred to as PPAC.
Percentage Increases by Area
In percentage terms, consumers in areas served by BSES Yamuna Power Limited (BYPL) — covering east and central Delhi — are expected to see a rise of approximately 5.7%. For areas served by BSES Rajdhani Power Limited (BRPL) in south and west Delhi, the increase will be around 3.4%. Consumers under Tata Power Delhi Distribution Limited (TPDDL) are unlikely to notice any significant change as the PPAC adjustment is marginal.
Implementation Timeline
The hike will be implemented in June, with consumers facing higher bills from July onwards. BRPL’s PPAC has increased from 14.5% to 17.9%, while BYPL’s has risen from 11.7% to 17.4%. TPDDL’s PPAC has changed marginally from 15.9% to 16%.
Understanding PPAC
The PPAC surcharge helps distribution companies recover costs arising from fluctuations in power purchase prices and fuel costs. Since electricity generation heavily depends on coal and natural gas, any increase in these costs raises the cost of power production and procurement. In Delhi, power purchase accounts for nearly 80% of a discom’s total expenditure, making PPAC a crucial component of electricity bills. An official stated that until March, PPAC was revised quarterly. From April onwards, the surcharge is being revised every month based on actual power purchase costs.
Reason for the Hike
The latest increase follows a sharp rise in procurement costs in April, when demand surged due to rising temperatures, forcing discoms to purchase expensive power from the market to meet demand. DERC has approved the new PPAC, subject to the submission of supporting documents and certification of power purchase costs.
Impact on Consumers
The impact on consumers will vary based on their electricity consumption and distribution company. According to an official, under the revised rates, a household consuming 400 units of electricity per month will pay approximately Rs 92 more in BYPL areas and Rs 56 more in BRPL areas. For households consuming 600 units per month, the increase will be Rs 170 in BYPL areas and Rs 102 in BRPL areas.
Subsidy Unaffected
The official clarified that the increase will not affect the Delhi government’s power subsidy, as the subsidy is linked to the number of units consumed rather than the final bill amount. In Delhi, domestic consumers using up to 200 units per month are not charged.
