New Delhi, June 13: The Delhi government has clarified the recent increase in the Power Purchase Adjustment Cost (PPAC) in electricity bills. Minister Ashish Sood stated that the ongoing crisis in West Asia has led to a significant rise in fuel prices, impacting electricity companies as well.
Minister Sood emphasized on Saturday that the Power Purchase Adjustment Cost (PPAC) is not a new system. Under the country’s electricity regulations, power companies are permitted to adjust costs based on the rising fuel prices used for electricity generation.
He explained that the cost of fuel used in electricity production is dependent on international conditions. The crisis in West Asia and its effects on the global supply chain have notably increased fuel prices in recent months. Consequently, there has been a rise in the power purchase cost for electricity companies.
Sood noted that the average electricity purchase cost across various sectors increased by approximately 31 percent last month. However, due to government intervention, only a 14.5 percent increase in the Power Purchase Adjustment Cost was approved. This time, despite a 31 percent loss, only a 2.4 percent increase was sanctioned.
The electricity minister stressed that the Delhi government’s aim is not to impose unnecessary financial burdens on consumers. The government is closely monitoring the situation and is striving to ensure that any increase in electricity rates has minimal impact on the public.
He reiterated that the rise in fuel prices due to global circumstances is also affecting electricity companies, placing additional burdens on them. However, the government is working to shield consumers from the impact of rising electricity prices.
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