Why Delhi electricity bills will rise by 7-10% this summer
What's the story
Residents in Delhi are getting ready for a hefty increase in their power bills this summer peak season in May-June.
The increase, between 7 and 10%, is due to a revision in the Power Purchase Adjustment Cost (PPAC).
The hike, which has been approved by the Delhi Electricity Regulatory Commission (DERC), will be applicable to all three major power distribution companies (discoms) in the national capital.
Regulatory decisions
DERC's PPAC orders for Q3 2024-25
The DERC has released new PPAC orders for Q3 of 2024-25.
While BSES Rajdhani Power Limited (BRPL) will have a PPAC of 7.25% and BSES Yamuna Power Limited (BYPL) 8.11%, Tata Power Delhi Distribution Limited (TPDDL) has an astronomical 10.47%.
The revised charges will be visible in consumers' bills in the May-June billing cycle, reported PTI.
Cost fluctuations
Understanding the PPAC and its impact
The PPAC is a variable surcharge to compensate for fluctuations in fuel prices, mainly coal and gas, faced by power generation companies.
Discoms pass on this additional cost to consumers as a percentage of the fixed and energy charges in their electricity bills.
Though they have not publicly defended the PPAC hike, discom sources have come out in its support, saying it is in accordance with DERC regulations, PTI reported.
Resident backlash
URD criticizes DERC's decision
The United Residents of Delhi (URD), a federation of Residents Welfare Associations, has slammed the DERC's decision.
URD General Secretary Saurabh Gandhi termed the move "arbitrary" and the charges levied on Delhi residents by DERC "legally wrong."
He further questioned the procedure adopted by DERC, alleging stakeholders weren't provided sufficient opportunity to present their case during a virtual public hearing.