Delhi’s electricity bills surge with 4% hike in PPA cost, know details here

Electricity costs in Delhi have increased with power purchase agreement (PPAC) costs up 4% from mid-June, reports on July 10 said. PPAC price increases have been imposed by discoms on consumers.

Citing the hike in fuel prices such as coal and gas, an electricity ministry official said the price hike was introduced by power distribution companies (discoms) after being approved by the Delhi Electricity Regulatory Commission (DERC). ) approve.

According to the details, the PPAC is a surcharge to offset the disadvantages of changing market fuel costs. It is applied as a surcharge on the total energy cost and the flat charge component of the electricity bill.

“PPAC in Delhi has been increased by 4% since June 11, as approved by DERC,” an official source said.

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As directed by the Ministry of Electricity on 9 November 2021, every state management committee (DERC in the case of Delhi) must put a mechanism to automatically pass on fuel and electricity procurement costs in the schedule. prices to ensure the viability of the power sector. a discom official.

More than 25 countries and union territories have already implemented a fuel surcharge adjustment formula, he said.

Under the DERC Electricity Act, PPAC is a mandatory requirement. Central Management Committee, CERC allows central PSU gencos such as NTPC, NHPC and trancos, PPAC monthly. On the other hand, discoms in Delhi are allowed quarterly PPACs, the official added.

“PPAC is rated to compensate for the increase in fuel prices. most 20 per unit, before being limited by CERC to 12 per unit,” officials said.

The cost of purchasing electricity for retail outlets in Delhi has increased by about 300% since 2002, while retail prices have increased by about 90% in the corresponding period.

In addition, the official said, “The discoms distribution license charges a PPAC of 4.5% without going through legal formalities. In the event that the actual PPAC exceeds 4.5%, the discoms application is filed. application to DERC for a differential PPAC claim. Once approved from the commission, the PPAC difference is included in subsequent invoices.”

With PTI input.

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