The Delhi Electricity Regulatory Commission (DERC) has allowed the three main discoms—BRPL, BYPL, and TPDDL—to recover the PPAC for the third quarter of 2024-25. The move has faced criticism from the United Residents of Delhi (URD).
With temperatures rising, Delhites may feel even more heat with electricity bills in the national capital expected to rise by 7-10% during the May-June period following a revision in the Power Purchase Adjustment Cost (PPAC) charged by the city’s power distribution companies (discoms).
The PPAC reflects the increase in fuel costs, mainly coal and gas, incurred by power generation companies. Discoms recover this additional cost from consumers as a percentage of the fixed charge and the energy charge based on consumption, news agency PTI reported.
Earlier this month, the Delhi Electricity Regulatory Commission (DERC) issued separate orders allowing the three main discoms in the capital to recover PPAC for the third quarter of 2024-25 during the current billing cycle. The approved PPAC rates are 7.25 per cent for BSES Rajdhani Power Limited (BRPL), 8.11 per cent for BSES Yamuna Power Limited (BYPL), and 10.47 per cent for Tata Power Delhi Distribution Limited (TPDDL).
The discoms have yet to publicly comment on the PPAC hike. However, the move has drawn sharp criticism from the United Residents of Delhi (URD), an umbrella group representing resident welfare associations across the city.
Saurabh Gandhi, general secretary of the URD, called the increase “arbitrary” and alleged legal irregularities in the process. “The procedure under which the PPAC has been imposed is legally flawed,” he said, adding that stakeholders were not given sufficient time to raise objections during a virtual public hearing.
Gandhi also pointed out inconsistencies in the percentage increases approved for the three discoms. “Since the fuel surcharge under Section 64(4) is nearly identical for all discoms, the PPAC percentages should also have been uniform,” he argued.
In response, discom sources defended the surcharge, stating that it complies with DERC regulations and varies by company due to different billing cycles and fuel sourcing. “PPAC ensures timely pass-through of power purchase costs to consumers. It is a statutory provision, and the process is both transparent and validated by the regulator,” said one official.
They also warned that without PPAC, discoms would face liquidity constraints, potentially affecting their ability to pay power generation companies on time.
(With inputs from PTI)
