Consumers will have to pay more for power in the national Capital now. Accepting the power distribution companies’ (discoms) petitions to increase tariffs on the basis of the high cost of power purchase, the Delhi Electricity Regulatory Commission (DERC) in its order dated June 22, has allowed BSES Yamuna Power Limited (BYPL) to charge 9.42 per cent more on top of the prevailing rates, BSES Rajdhani Power Limited (BRPL) 6.39 per cent, and New Delhi Municipal Council (NDMC) 2 per cent for the next nine months (from July 2023 to March 2024).

Electricity consumers residing in South Delhi, West Delhi, Trans-Yamuna areas of Delhi, Old Delhi, and New Delhi would be affected by the change in power tariff.  The new rates came into effect on June 23.  However, the hike will not impact consumers whose electricity consumption is 200 units or below.

These charges will be in addition to the PPAC (Power Purchase Agreement Cost) already applicable for these areas which are 28 per cent for NDMC, 20.69 per cent for BRPL, and 22.18 per cent for BYPL. PPAC has increased by 1.49 per cent for consumers residing in Tata Power DDL areas. The PPAC has been increased from 27 to 31 per cent in the last three years. Interestingly power tariff is being increased in Delhi for the last few years indirectly through PPAC.

The Opposition BJP and Congress slammed the Arvind Kejriwal Government for hike in power tariff and demanded that the Government withdraw it. Leader of Opposition in Delhi Assembly, Ramvir Singh Bidhuri demanded a special session of Delhi Assembly and stated that the BJP legislative group will stage a protest outside the Chief Minister’s residence against this issue on Tuesday at 2 PM.

Responding to the power tariff hike, Delhi Power Minister Atishi said the consumers who get free electricity up to 200 units will not be hit by the latest rise in tariffs. However, she added other consumers will have to pay about an 8 per cent surcharge. She also blamed the Central Government for the power tariff hike in the national Capital. "The electricity tariff in Delhi is increasing only because of the mismanagement of the Central Government and the increasing rates of coal blocks," Atishi said.

Since, the PPAC computed is high in value on account of blending of coal and increased gas prices, the DERC has approved BYPL and BRPL pleas to levy additional 9.42 per cent and 6.39 per cent PPAC over and above the ongoing PPAC of 20.69 per cent with both PPACs having validity till nine months from the issuance of this order.

The PPAC is revised every three months and it can increase or decrease depending on the prevailing prices of fuel such as coal and gas used in power generation.

The Tata Power DDL spokesperson said the PPAC has increased by 1.49 per cent for Tata Power DDL by DERC as per the latest order on June 7 this year. This decision has been made in response to the rising costs associated with power generation mainly due to increased blending of imported coal as per MOP directions.