Power consumers face tariff jolt in Delhi As PPAC sees a steep hike
NEW DELHI: Residents of Delhi will soon face higher electricity bills following a significant hike in the Power Purchase Adjustment Charges (PPAC).
According to discom officials, the PPAC between May 1 and May 8 stood at 6.29% in
BSES Rajdhani Power Limited
(BRPL) areas and 5.22% in BSES Yamuna Power Limited (BYPL) zones.
These rates have now increased to 13.54% and 13.33%, respectively, effective from May 9 until Aug 8.
Delhi's electricity is supplied by four distribution companies: BRPL, BYPL, Tata Power Delhi Distribution Limited (TPDDL) and New Delhi Municipal Council (NDMC). The hike in PPAC varies across these discoms.
Delhi Electricity Regulatory Commission
(DERC) has approved revised PPAC rates for the next two to three months: 13.33% for BYPL, 13.54% for BRPL, and 19.22% for TPDDL.
PPAC is a surcharge levied as a percentage of the base tariff, which includes fixed charges and consumption-based energy charges. It is meant to offset fluctuations in power purchase costs due to variable coal and fuel prices. However, officials confirmed that consumers receiving subsidies for using up to 200 units of electricity per month will not be impacted by this hike.
Delhi has approximately 6.5 million domestic electricity consumers.
During winter months (Jan to April), about 60% of these households consume less than 200 units and, therefore, receive electricity free of charge.
Neither Delhi govt nor the discoms have officially responded to the PPAC hike. Delhi BJP, however, criticised the increase, particularly in the run-up to elections, holding multiple protests demanding a rollback of the surcharge.
Saurabh Gandhi, general secretary of United Residents of Delhi (URD), voiced concern over the transparency of the PPAC process.
"The process under which PPAC charges have been imposed is not transparent," he said. "We are also trying to approach the Delhi government for intervention that may provide relief to the public."
Gandhi also criticised the tariff fixation commission, stating it failed in its responsibilities: "This is not acceptable in the public interest."
A source in the power department noted that under the ministry of power's 2021 guidelines, state regulatory commissions are required to establish a mechanism for the automatic pass-through of fuel and power procurement costs. "In Delhi, PPAC is not passed through automatically. Discoms can only levy it after DERC verification and approval," the source said.
The source further clarified that DERC, in its recent orders, did not allow discoms to recover "other charges," such as cess, taxes, water fees, and backdown charges paid to power generators.
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