Electricity bills are set to increase for lakhs of consumers in Delhi from July after the Delhi Electricity Regulatory Commission (DERC) approved a higher Fuel and Power Purchase Adjustment Surcharge (FPPAS), allowing power distribution companies to recover increased procurement costs.
The surcharge revision will affect consumers differently depending on their power distributor, with customers in some areas likely to see a more noticeable rise in monthly bills.
According to reports, consumers served by BSES Yamuna Power Limited (BYPL), covering east and central Delhi, could face an increase of around 5.7 per cent in their electricity bills. Those in areas served by BSES Rajdhani Power Limited (BRPL), which covers south and west Delhi, may see bills rise by about 3.4 per cent.
Consumers under Tata Power Delhi Distribution Limited (TPDDL) are unlikely to experience a significant change, as the surcharge revision for those areas is marginal.
The revised surcharge will be implemented in June and reflected in electricity bills issued from July onwards.
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The increase follows DERC's approval permitting distribution companies to pass on higher power procurement costs through the surcharge mechanism. The FPPAS, commonly known as the Power Purchase Adjustment Cost (PPAC), enables utilities to recover fluctuations in fuel and electricity purchase expenses.
Power purchase constitutes nearly 80 per cent of a distribution company's total expenditure in Delhi. Since electricity generation depends heavily on coal and natural gas, any rise in fuel prices directly affects procurement costs.
Until March, PPAC revisions were undertaken on a quarterly basis. However, from April, the surcharge began to be revised monthly based on actual power purchase costs.
Officials said the latest increase was driven by a sharp rise in electricity procurement expenses during April as soaring temperatures boosted demand and forced utilities to buy more expensive power from the market.
The impact will vary according to consumption levels. A household consuming 400 units of electricity a month may pay around Rs 92 more in BYPL areas and about Rs 56 more in BRPL areas. For households using 600 units, the increase could be about Rs 170 and Rs 102, respectively.
Officials clarified that the revision will not affect the Delhi government's existing power subsidy scheme. Consumers using up to 200 units per month will continue to receive free electricity under the scheme.
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