BJP, AAP trade barbs over ‘increase’ in Delhi power bills

PPAC is the surcharge component in power bills which is provided by electricity regulatory commissions to meet additional costs due to variations in power purchase costs

The Bharatiya Janata Party (BJP) and the Aam Aadmi Party (AAP) traded barbs on Wednesday over allegations of power hikes in the Capital. The Delhi BJP accused the Aam Aadmi Party (AAP) government of “surreptitiously” increasing electricity tariffs under the guise of power purchase adjustment cost (PPAC). Power minister Atishi immediately hit back, accusing the BJP of “spreading false rumours about hike in tariffs”, saying that BJP-ruled states provided the most expensive power in the country.

The PPAC rate can be revised four times a year or once every quarter and remains valid for three months. (Representative photo/HT Archive)

PPAC is the surcharge component in power bills which is provided by electricity regulatory commissions to meet additional costs due to variations in power purchase costs incurred by the discoms. The power bills continue to vary throughout the year.

Delhi BJP president Virendra Sachdeva said, “AAP-led government is increasing the rates surreptitiously. They are not changing the units, but under the PPAC Act, the charges have increased to 8.5%. Increased rates have been implemented under PPAC.”

However, Atishi said that the Delhi Electricity Regulatory Commission (DERC) ordered discoms that the current PPAC will remain unchanged.

She said: “According to the Electricity Act of 2003, discoms can increase the PPAC by up to 10% in the summer to meet increased demand, a provision that has been in place since the act was passed. BJP is misleading the people of Delhi by spreading rumors that electricity prices have been increased in Delhi.”

The PPAC rate can be revised four times a year or once every quarter and remains valid for three months. This rate is revised following the approval of the DERC. If the PPAC is over 10%, discoms can also levy an additional or “suo-motu” PPAC of up to 8.75% for the high costs already incurred by the discom. This additional PPAC can also be levied every quarter.

For this quarter, the PPAC ranges from 27.08% under BRPL to 31.6% under BYPL. It is 30% under NDMC and 29.13% under TPDDL. The suo motu PPAC ranges from 6.15% to 8.75%. This effectively means that for a consumer who has utilised 201 units in the month — beyond the free subsidy limit of 200 units — the suo motu PPAC will add around ₹50 to ₹60 to the bill, while for those who have consumed over 401 units, the cost will be around ₹140-150, an official aware of the matter said on the condition of anonymity.

Power distribution companies did not comment on the allegations.

Another official, not wishing to be named, said: “The power purchase cost is dependent upon the fuel prices. Recently, there has been significant increase in coal prices due to higher imports and transport costs. Across the country, more than 25 stats and union territories have implemented fuel surcharge adjustment formula mechanism.”

“PPAC is a statutory mandate and without PPAC, discoms will have liquidity stress and won’t have money to pay the generators. PPAC is recovery of the money already paid to the generators to purchase power,” the official added.

Sachdeva, meanwhile, alleged that the Delhi government did not make prior arrangements for extra electricity during summer. “When the heat peaked in April 2024, power cuts began, and then the power discom and Delhi government started their game. BSES Rajdhani wrote to the DERC secretary on April 25, 2024, stating that they are increasing the PPAC by 8.75% from May 2024 to July 2024. The government and discom colluded to increase the PPAC.”

Atishi retorted by saying that the BJP-run states provided the most expensive electricity in the country and even after paying high rates, people had to face long power cuts in peak summer.