Consumers to Face 7–10% Hike in May-June Due to Fuel Cost Adjustment
New Delhi, May 11 — Electricity bills in Delhi are set to rise by 7 to 10 per cent during the May-June billing cycle following the approval of revised Power Purchase Adjustment Cost (PPAC) charges by the Delhi Electricity Regulatory Commission (DERC), officials confirmed on Sunday.The PPAC reflects the increase in fuel costs such as coal and gas incurred by power generation companies. These expenses are passed on to consumers by distribution companies (discoms) and are calculated as a percentage of the fixed and energy charges in monthly electricity bills.
DERC recently issued separate orders authorizing the city’s three power discoms to recover PPAC for the third quarter of the 2024–25 financial year over the May-June period. The approved rates are:
- 7.25% for BSES Rajdhani Power Limited (BRPL)
- 8.11% for BSES Yamuna Power Limited (BYPL)
- 10.47% for Tata Power Delhi Distribution Limited (TPDDL)
Residents Slam Decision as 'Arbitrary'
The hike has sparked criticism from consumer groups. The United Residents of Delhi (URD), an umbrella organization of resident welfare associations, condemned the move as unjust and legally questionable.Saurabh Gandhi, General Secretary of URD, alleged that the DERC bypassed fair procedure by conducting a virtual public hearing without giving stakeholders adequate time to present their views. “We had high expectations from the newly constituted Commission to ensure a fair tariff determination process,” Gandhi said in a statement.
He also questioned the variance in PPAC rates across discoms, arguing that since the fuel surcharge cost is similar, the tariff differential should not exist.
Discoms Cite Regulatory Compliance
While the discoms did not issue official statements, internal sources defended the move. They emphasized that the PPAC recovery mechanism is statutory and validated by the regulator. “This process ensures timely reimbursement of rising fuel costs to prevent liquidity issues that could delay payments to power generation firms,” said a discom source.They also explained that the approved PPAC percentages were based on different regulatory timelines and inputs specific to each discom.
No response has yet been issued by DERC regarding the concerns raised by URD.
As Delhi enters peak summer season, residents are likely to feel the impact of higher bills during months when electricity usage typically surges.