Delhi: DERC revises surcharge cost, may lower bills

DERC cuts power purchase adjustment cost by nearly half, leading to lower electricity bills for consumers in Delhi from next billing cycle.

New Delhi

The previous PPAC rates for both discoms were applicable till December 20. (AFP)

The Delhi Electricity Regulatory Commission (DERC) has reduced the power purchase adjustment cost (PPAC) — a surcharge component in electricity bills — by nearly half, which will likely result in lower bills for consumers in parts of the city, people aware of the matter said on Friday.

The PPAC component in electricity bills is meant to offset the increase in the cost of the electricity that discoms buy from power generation companies, and prices may vary depending on what part of the Capital a consumer resides in, and on the price of coal. The PPAC rate can be revised once every quarter, and remains valid for three months. This rate is revised following the approval of DERC.

Before Friday’s development, officials said, the PPAC for BRPL — which supplies power in south and west Delhi — was 35.83%, and this has now been revised to 18.19%. The surcharge for BYPL, which supplies power in east Delhi, was earlier 38.12% and has now been revised to 13.63%. Tata Power DDL (TPDDL) — which supplies power in north Delhi — has had its PPAC slashed from 36.33% to 20.52%, according to DERC orders.

However, a petition by New Delhi Municipal Corporation (NDMC) — which supplies power in and around Lutyens Delhi — to revise the surcharge is still pending before the commission.

How power bills will be affected

The Aam Aadmi Party (AAP) government in Delhi provides power subsidy to consumers on monthly basis under five categories — the use of electricity up to 200 units is free, irrespective of load; 50% subsidy is given to domestic consumers using up to 400 units, with a cap of ₹850; electricity is free for lawyers’ chambers located within the Capital’s court complexes; the victims of the 1984 anti-Sikh riots get 100% electricity subsidy up to 400 units per month; and unlimited free electricity is available to all farmers for irrigation purposes.

People aware of the matter said the revision in PPAC will lead to lower electricity bills for all consumers from the next billing cycle.

For example, by rough calculations, if a domestic consumer gets a bill for 600 units of power, if the person lives in BRPL areas, their charges under the previous rate would be ₹4,802, which will drop to ₹4,239 under the new rate.

In BYPL areas, the same bill will be ₹4,093 — down from the earlier ₹4,863.

Political parties weigh in

DERC is a key regulatory commission that oversees the electricity sector of the Capital and fixes the power tariffs.

On Friday, both the Bharatiya Janata Party (BJP) and the AAP were quick to take credit for the revision in PPAC rates.

The BJP claimed that their party “exposed the nexus” between the AAP and private power companies.

“As a result of BJP’s pressure, DERC had to conduct a transparent analysis, leading the constitutional authority not only to reject BYPL’s demand to increase PPAC but also to enforce a reduction. BJP has exposed the nexus between the AAP government and private power companies. Soon, with the BJP forming the government in Delhi, this 10-year-long loot by the Kejriwal government and private companies would be referred to the CBI for investigation,” said Delhi BJP president Virendra Sachdeva.

The AAP, however, chose to focus on the Delhi government’s policies which they said have led to people enjoying zero electricity bills.

“This reduction will result in lower electricity bills for all consumers across Delhi. It was made possible due to the honest, people-centric governance of the AAP. If the BJP is so keen on taking credit it should reduce power prices in 22 states governed by them… Neighbouring cities such as Noida and Gurugram not only have high tariffs but also experience frequent power cuts during summer. In Delhi, on the other hand, people enjoy 24-hour power supply and, in many cases, zero electricity bills due to our policies,” chief minister Atishi, who also holds the power portfolio, said.

HT reached out to the power discoms, but they did not comment on the matter.