Electricity bills in parts of Delhi to increase from June
What's the story
The Delhi Electricity Regulatory Commission (DERC) has approved a hike in the fuel and power purchase adjustment surcharge (FPPAS). The increase will mainly affect consumers in east and central Delhi who are served by BSES Yamuna Power Limited (BYPL), as per Hindustan Times. The FPPAS is a variable charge that allows power distribution companies (discoms) to recover sudden increases in electricity procurement costs.
Bill increase
How much more will consumers have to pay?
The DERC has approved higher surcharge limits for April 2026, citing a sharp rise in power purchase costs due to higher fuel prices and global market uncertainties. For instance, a household with a sanctioned load of 2 kilowatts (kW) consuming 600 units monthly in BYPL areas may see its bill go up by ₹170, from ₹3,766 to ₹3,936. In BSES Rajdhani (BRPL) areas, the same increase would be around ₹102.
Decision details
Impact on subsidized consumers
The DERC allowed BYPL to increase its surcharge from 11.71% to 17.43%, while BRPL's surcharge was raised from 14.51% to 17.94%. Tata Power Delhi Distribution Limited (TPDDL) saw a marginal increase from 15.99% to 16%. Notably, consumers receiving Delhi government electricity subsidies will not be affected by this hike as the subsidy is based on units consumed, not total bill amount.
Adjustment mechanism
New mechanism for future adjustments
The DERC's latest order also introduces a new mechanism for future adjustments. If discoms incur costs that exceed the current surcharge ceiling, these amounts can be carried forward and recovered later when permissible limits allow. This change will likely lead to a marginal increase of 1-3.3% in power bills for consumers using over 400 units of electricity from June onwards.