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Time of India
2 days ago
- Business
- Time of India
BSES Discoms To Recover 28.5k Cr Dues
New Delhi: Delhi's two power distribution companies, BSES Yamuna and BSES Rajdhani, on Friday said they would recover power dues amounting to Rs 28,483 crore by March 31, 2028. The move may lead to the spiralling of electricity charges in the city. Tired of too many ads? go ad free now Days after Supreme Court allowed the discoms to liquidate the existing regulatory assets within a maximum of four years starting from April 1, 2024, Reliance Infrastructure Limited, which owns a 51.49% stake in BSES, a joint venture with Delhi govt, stated that the total dues of its two subsidiaries, BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL), amount to Rs 28,483 crore as of July 31. "As directed in the judgment, the existing regulatory asset must be liquidated in a maximum of four years starting from April 1, 2024, taking Rule 23 (of Electricity Rules 2005) as the guiding principle. Accordingly, the regulatory asset as approved by DERC (Delhi Electricity Regulatory Commission) shall be liquidated/recovered by March 31, 2028," Reliance Infra stated. Regulatory assets are costs incurred by a discom that are deferred on the balance sheet and allowed to be recovered from the customers later through approved rates or tariffs. No immediate reaction was available from Delhi govt. BRPL and BYPL together cater to nearly two-thirds of Delhi and provide electricity to over 53 lakh houses in east, northeast, south, southwest and parts of west Delhi. While Tata Power Delhi Distribution Limited (TPDDL) caters to north, northwest and parts of central Delhi, NDMC provides electricity in Lutyens' Delhi. Sources said TPDDL, too, has accumulated regulatory assets of nearly Rs 6,000 crore. The apex court on Wednesday directed that the regulatory assets, including carrying costs to the tune of Rs 27,200.37 crore, be paid within three years to Delhi's three private discoms. Tired of too many ads? go ad free now Reliance Infra said its subsidiaries filed a writ petition and civil appeals in 2014 before Supreme Court, raising the issue of "non-cost reflective tariff, unlawful creation of regulatory asset and non-liquidation of regulatory asset". Referring to the order, Reliance Infra said the court had directed DERC to provide the "trajectory and roadmap" for the liquidation of the existing regulatory asset, which would include provisions for dealing with carrying costs. It added that DERC must also undertake an intensive audit of the circumstances in which the discoms continued without recovery of assets. Saurabh Gandhi, general secretary of United Residents of Delhi, said DERC earlier allowed the recovery of Rs 800 crore, which every consumer in Delhi had been paying at 8% on every bill as power purchase agreement cost for the past 13 years. Yet that amount remains outstanding, he added. "Imagine how much will have to be paid now," Gandhi said.
New Indian Express
13-05-2025
- Business
- New Indian Express
Delhi residents oppose hike in surcharge
NEW DELHI: Residents in Delhi are bracing for a steep hike in their electricity bills during the summer peak months of May–June, following a revision in the Power Purchase Adjustment Cost (PPAC). The Delhi Electricity Regulatory Commission (DERC) has approved a 7–10% increase, applicable to the capital's three major power distribution companies—BRPL, BYPL, and TPDDL—to recover PPAC for Q3 of the 2024–25 financial year. As per DERC's latest order, BRPL will charge 7.25%, BYPL 8.11%, and TPDDL 10.47%—a disparity that Resident Welfare Associations (RWAs) are questioning. The United Residents of Delhi (URD), an umbrella body of RWAs, alleged that the DERC panel did not follow proper procedure. 'We had great hope from the Commission 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,' said URD General Secretary Saurabh Gandhi. 'The process under which PPAC charges have been imposed on the people of Delhi by DERC is legally wrong,' he added.
Time of India
12-05-2025
- Business
- Time of India
Electricity bills of power consumers in Delhi to be hiked by 7-10% in May-June period
The electricity bills of power consumers in Delhi will be hiked by 7-10 per cent in the May-June period due to revision of PPAC charged by the discoms, officials said on Sunday. The power purchase adjustment cost (PPAC) refers to rise in fuel (coal, gas) costs incurred by the generation companies which is recovered by discoms from the consumers. It is calculated as percentage of fixed charge and energy charge (units consumed) components of the electricity bill. 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. No reaction was 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," said a statement from URD general secretary Saurabh Gandhi. 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. It is a statutory mandate and the process is very transparent and validated by the regulator," they said. Without PPAC, discoms will have liquidity stress and they will have no money to pay the power generation companies, sources added.
Time of India
12-05-2025
- Business
- Time of India
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.
Time of India
12-05-2025
- Business
- Time of India
Electricity bills of power consumers in Delhi to be hiked by 7-10% in May-June period
The electricity bills of power consumers in Delhi will be hiked by 7-10 per cent in the May-June period due to revision of PPAC charged by the discoms, officials said on Sunday. The power purchase adjustment cost (PPAC) refers to rise in fuel (coal, gas) costs incurred by the generation companies which is recovered by discoms from the consumers. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare It is calculated as percentage of fixed charge and energy charge (units consumed) components of the electricity bill. 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Victoria Principal Is Almost 75, See Her Now Reportingly Undo The PPAC allowed are 7.25 per cent for BRPL, 8.11 per cent for BYPL and 10.47 percent for TPDDL. No reaction was available from the discoms on the increase in PPAC allowed by the DERC. Live Events 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," said a statement from URD general secretary Saurabh Gandhi. 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. It is a statutory mandate and the process is very transparent and validated by the regulator," they said. Without PPAC, discoms will have liquidity stress and they will have no money to pay the power generation companies, sources added.
