Delhi: Electricity likely to get costlier; PPAC to increase by 4% from today

With a 4% increase in the Power Purchase Adjustment Fee (PPAC), electricity in Delhi will become more expensive. On June 11, 2022, PPAC will increase by almost 4% thanks to the decision of the Delhi Electricity Regulatory Commission (DERC). According to a representative of the electricity distribution company (DISCOM), the assessed PPAC will compensate for the increase in fuel prices.

Before the Central Electricity Regulatory Commission (CERC) limited electricity exchange rates at 12 per unit, they got close to 20 per unit, higher the price of imported coal soars collecting tolls at coal-fired power stations in the Central region, gas prices increase, electricity prices are higher.

According to officials, the cost of purchasing electricity for DISCOMS in Delhi has increased by nearly 300% since 2002, a cost over which DISCOMS has little control, while retail prices have increased by about 90% during the same period. , according to officials.

According to DISCOM, timely review of the PPAC is a requirement under the Electricity Act, which is exclusive to DERC tariff orders and orders of the Electric Power Court of Appeals (APTEL).

National Thermal Power Corporation (NTPC), National Hydropower Corporation (NHPC) and transmission companies are authorized by the Central Electricity Regulatory Commission to inspect the PPAC monthly. On the other hand, Delhi DISCOMS reviews the PPAC every three months.

To compensate for the changes As part of market-driven fuel costs due to rising coal and gas prices, DISCOMS imposes an additional fee on producers known as the Power Purchase Adjustment Fee (PPAC).

Every public regulator (DERC in the case of Delhi) must implement a mechanism to automatically transfer electricity and fuel procurement costs in the tariff to ensure the viability of the power sector, as directed by the Ministry of Industry and Trade. Electricity on 9/11. , in 2021.

PPACs are required by the DERC Electricity Act. Monthly, the central regulatory committee (CERC) licenses central PSU genes such as NTPC, NHPC and trancos (PPAC). On the other hand, Delhi discoms are allowed PPAC once every three monthsThis official noted.

(With agent input)

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