Delhi: RWAs, Opposition slam power surcharge spike in Delhi bills

The DERC's hike in power purchase adjustment costs will raise Delhi electricity bills by 7-10%, drawing criticism from opposition and residents.

A steep hike in the power purchase adjustment cost (PPAC) component of electricity bills in the Capital—approved by the Delhi Electricity Regulatory Commission (DERC)—has drawn sharp criticism from opposition parties and residents’ associations, who have called it an “unjustified burden” on consumers already reeling under inflation. The increase is expected to push electricity bills up by 7-10% for the May–June period, officials said on Sunday.

Ashok Bhasin, president of the North Delhi Residents Welfare Federation, called the PPAC hike “unjustified on several counts”. (REUTERS)

PPAC is a variable surcharge meant to offset fluctuations in the cost of electricity that distribution companies (discoms) purchase from power generators. Its rate depends on factors such as coal prices and region-specific supply dynamics, and is calculated as a percentage of the fixed and energy (unit-based) charges on the bill.

Electricity in Delhi is supplied by four entities—BSES Rajdhani (BRPL), BSES Yamuna (BYPL), Tata Power Delhi Distribution Limited (TPDDL), and the New Delhi Municipal Council (NDMC). The newly approved PPAC rates stand at 13.33% for BYPL, 13.54% for BRPL, and a striking 19.22% for TPDDL.

BS Vohra, president of the East Delhi RWA Joint Front, said the charges—reduced ahead of the Delhi Assembly elections—have now returned with a vengeance. “Shockingly, a carrying cost has been confirmed for the miscalculations of DERC, and consumers have to pay now for errors committed by the regulatory commission. These charges will only increase in the coming months, since there is no election in sight. BJP had promised to cap these surcharges, but the government has not kept its word,” he said.

The issue of PPAC was a flashpoint in the run-up to the Assembly polls in February. Delhi BJP had staged demonstrations against the “imposition” of PPAC and alleged “exorbitant electricity bills”, accusing the AAP government of failing to purchase adequate power in advance for peak summer and winter demands—forcing residents to shoulder additional costs.

Ashok Bhasin, president of the North Delhi Residents Welfare Federation, called the PPAC hike “unjustified on several counts”. Referring to a public hearing held on March 27, he said, “We raised two major points. First, while they’re charging PPAC, DERC rules clearly state that consumers must be compensated for unscheduled and prolonged outages. Is anyone informing us in advance about cuts longer than 30 minutes?”

Bhasin added that PPAC is meant to recover costs from actual electricity consumption, not fixed charges. “They’re applying PPAC even to the fixed component. Regardless of usage, how can discoms recover money on a fixed cost basis?” he argued.

Saurabh Gandhi, general secretary of United Residents of Delhi (URD)—a coalition of RWAs—said the Delhi Commission had failed in its role as a public guardian. “The tariff fixation commission holds a crucial responsibility, and it has failed to fulfil it. This is unacceptable in public interest. Those responsible must be removed. Moreover, the PPAC claimed by discoms and that approved by DERC varies widely. Since fuel surcharge costs are broadly similar under Section 64(4), PPAC rates should not differ so drastically,” he said.

Political backlash

The Aam Aadmi Party termed the move a “stunning betrayal” by the BJP. “BJP’s four-engine government has dealt another blow to Delhi residents —first by plunging the capital into prolonged power cuts, and now by hiking electricity rates by 7%. The same BJP that promised free electricity is now enabling private power companies to profit at the public’s expense,” AAP MLA Kuldeep Kumar said at a press conference on Monday.

Delhi Congress president Devender Yadav echoed the sentiment, calling the hike “yet another financial blow” to struggling households. “The ‘Triple Engine’ BJP government is emulating the corrupt Kejriwal model by raising the PPAC surcharge, forgetting that it was BJP workers who once took to the streets to protest such hikes. Now they’re enabling discoms to exploit Delhi’s consumers,” he said.

Both the discom and the BJP spokesperson did not respond to HT’s request for a comment on the matter.