New Delhi, June 13: Electricity consumers in Delhi may face a significant increase in their bills this June. The Delhi Electricity Regulatory Commission (DERC) has approved the Power Purchase Adjustment Cost (PPAC) for the three electricity distribution companies in the capital: BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), and Tata Power Delhi Distribution Limited (TPDDL). This decision will lead to higher bills for consumers who use more electricity.
For the first time, the PPAC will be reviewed and collected on a monthly basis. Previously, this process occurred every three months. According to the DERC, the PPAC is implemented to pass on a portion of the increased costs of purchasing electricity from power generation companies to consumers. Rising prices of coal and other fuels have made electricity procurement more expensive, prompting this measure.
The DERC has allowed BRPL to impose a PPAC of 17.94%, BYPL 17.43%, and TPDDL 16%. However, these rates are lower than what the companies initially requested.
Fortunately for most households benefiting from the Delhi government’s electricity subsidy, this change will not directly affect them. Families consuming between 200 to 400 units, and those using up to 500 units, will not see any additional burden on their bills, as the subsidy is based on the units consumed rather than the total bill amount.
However, consumers who exceed 500 units and fall outside the subsidy bracket may face an additional surcharge of 7% to 18% on their April bills. This could result in higher electricity bills in June compared to previous months.
Additionally, the DERC has implemented a new rule, termed ‘F’, which allows any unadjusted amount from one month to be gradually recovered in subsequent months. The commission states that this will assist electricity distribution companies in making timely payments to power producers and reduce the burden of interest.
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