Now Increased Electricity Bills For Delhites

Power Purchase Adjustment Costs (PPAC), which Discoms impose on consumers, have increased in Delhi by 4% as of mid-June, according to government sources today.
According to a representative of the electricity department, the rise was implemented by the power distribution firms (discoms) with Delhi Electricity Regulatory Commission (DERC) clearance due to an increase in the cost of fuels such as coal and gas.

However, there was no quick response from DERC available. The PPAC is a premium that the Discoms must pay to cover changes in market-driven gasoline prices. According to officials, it is added as a surcharge to the fixed charge and total energy cost portions of an electrical bill.

Every state regulatory commission (DERC in the case of Delhi) must implement a mechanism for the automatic pass-through of fuel and power procurement costs in tariff in accordance with directions from the Ministry of Power on November 9, 2021, according to a Discom official.

An official source stated, "The PPAC in Delhi has been hiked by 4% as of June 11 in accordance with the DERC's sanction."

Every state regulatory commission (DERC in the case of Delhi) must implement a mechanism for the automatic pass-through of fuel and power procurement costs in tariff in accordance with directions from the Ministry of Power on November 9, 2021, according to a discom official. This will ensure the viability of the power sector.

According to him, the fuel surcharge adjustment formula has been applied in more than 25 States and Union Territories. The Electricity Act, DERC's own tariff orders, and Appellate Tribunal for Electricity (APTEL) order all call for the PPAC.

Central PSU gencos like NTPC, NHPC, and trancos, PPAC are permitted monthly by the central regulatory commission, CERC. Delhi discoms, on the other hand, are permitted PPAC once every three months, he said.

To balance the rise in fuel prices, the PPAC is imposed. In the most recent case, the CERC's ceiling of Rs 12 per unit on power exchange prices followed the mixing of imported coal, higher gas prices, and high prices that had reached roughly Rs 20 per unit, according to officials.

More than 25 States/Union Territories have implemented the fuel surcharge adjustment formula, he said.