Delhi electricity bills to rise by up to 10% this summer amid PPAC hike

Residents of Delhi are set to face even steeper electricity bills during the peak summer months of May and June, with a hike ranging between 7 per cent-10 per cent due to a revision in the Power Purchase Adjustment Cost (PPAC). The hike, that has been approved by the Delhi Electricity Regulatory Commission (DERC), impact all the three major power distribution companies (discoms) operating in the national capital.

The revised charges

According to the recent orders of DERC, the PPAC allowed for the third quarter of 2024–25 is 7.25 per cent for BSES Rajdhani Power Limited (BRPL), 8.11 per cent for BSES Yamuna Power Limited (BYPL), and 10.47per cent for Tata Power Delhi Distribution Limited (TPDDL). These revised charges will be claimed from the consumers during their May–June billing cycle, according to news agency PTI.

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The PPAC is a variable surcharge that accounts for fluctuations in fuel prices—primarily coal and gas—incurred by power generation companies. Discoms recover this additional cost from consumers as a percentage of the fixed and energy charges on their electricity bills.

Move draws criticism

While the discoms have not publicly addressed the PRAC hike, it has drawn criticism. The United Residents of Delhi (URD), a federation of Residents Welfare Associations. In a statement, URD general secretary Saurabh Gandhi termed the move 'arbitrary', calling the imposed charges on the Delhi residents by DERC 'legally wrong' and questioned the process followed by DERC. “The Commission conducted a virtual public hearing where stakeholders were not given adequate opportunity to present their case,” Gandhi alleged. He also pointed out the disparity in PPAC rates, arguing that “since fuel cost increases are broadly similar, the percentage differential should not be this wide.”

As per the PTI reports, Discom sources have defended the PPAC hike, saying that it complies with regulations of DERC and has been implemented as per the orders issued at different times for various discoms.

As temperatures soar in the capital, the financial burden on households is likely to increase alongside their energy consumption.