Delhi residents are bracing for a significant surge in their electricity bills, with the Delhi Electricity Regulatory Commission (DERC) approving a 7–10% hike in Power Purchase Adjustment Charges (PPAC) for the May–June billing cycle.
This adjustment, attributed to escalating fuel costs, has ignited widespread criticism from Resident Welfare Associations (RWAs) and opposition parties, who argue that the move imposes an undue financial burden on consumers already grappling with inflation. The PPAC, a variable surcharge reflecting fluctuations in the cost of electricity procured by distribution companies (discoms), is calculated as a percentage of the fixed and energy charges on a consumer’s bill. The newly approved PPAC rates are 7.25% for BSES Rajdhani Power Limited (BRPL), 8.11% for BSES Yamuna Power Limited (BYPL), and a notable 10.47% for Tata Power Delhi Distribution Limited (TPDDL) .
Residents’ associations have expressed deep concern over the hike. The United Residents of Delhi (URD), an umbrella body of RWAs, has labeled the process as “legally flawed,” citing inadequate stakeholder consultation during the virtual public hearing conducted by DERC. They argue that the differential PPAC rates among discoms lack justification, given the uniformity in fuel surcharge costs . Discoms, on the other hand, defend the PPAC hike as a necessary measure to ensure financial stability and uninterrupted power supply. They assert that the surcharge is a statutory mandate, transparently validated by the regulator, and essential to cover the rising costs of coal and gas used in power generation .
As Delhi enters the peak summer months, with temperatures soaring above 40°C, the increased electricity bills are expected to strain household budgets further. Residents are calling for greater transparency in the tariff determination process and urging the regulatory commission to consider the financial impact on consumers. In light of these developments, the focus shifts to the need for sustainable and equitable energy policies that balance the financial viability of discoms with the affordability concerns of consumers. Ensuring transparent regulatory practices and robust stakeholder engagement will be crucial in navigating the challenges of energy pricing in the capital
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