In a big relief to electricity consumers, the Delhi Electricity Regulatory Commission (DERC) has reduced the Power Purchase Adjustment Cost (PPAC) imposed by the Discoms in the National Capital. The PPAC collected by BSES Rajdhani Power was 35.83, BSES Yamuna Power 38.12 and Tata Power 36.33.
According to the DERC’s order, PPAC will be reduced from 37.75 percent to 13.63 percent in areas under the BSES Yamuna; 35.83 percent to 18.19 percent in areas under BSES Rajdhani and 37.88 percent to 20.52 percent in Tata Power’s areas from December 21, 2024 to March 20, 2025. It is estimated that 10 to 20 percent monthly electricity bill will come down after the DERC’s order.
According to rough calculations, a consumer in South Delhi (under BRPL) using up to 400 units of power will likely get relief of around Rs 285 in their monthly bill. Those using up to 600 units of power will likely get relief of around Rs 563 in their monthly bill. An East Delhi consumer using up to 400 units, will likely get relief of Rs 390 per month. Those using up to 600 units, will get relief of Rs 554 per month in their electricity bill. For a north Delhi consumer who uses 400 units, will likely get relief of Rs 281 per month. Those who use 600 units will likely get relief of Rs 554 per month in their electricity billing.
“Presently, ongoing PPAC is 27.08 percent, which is applicable till 20/12/2024. PPAC of Q2 of FY 2024-25 to be recovered works out to 9.44%. In view of this, the Petitioner is allowed to recover PPAC of 9.44% for 3 months beyond 20/12/2024 i.e., from 21/12/2024 to 20/03/2025,” the DERC said in its order on BSES Rajdhani Private Limited.
“The claim of BRPL for the additional PPAC to the extent of 9.08% citing the ad hoc addition in the preceding quarter by the Commission has not been considered in line with DERC (Business Plan) Regulations, 2023,” it said.
In the case of BSES Yamuna, the DERC said the ongoing PPAC is 30.34 percent at present, which is applicable till 20/12/2024. “PPAC of Q2 of FY 2024-25 to be recovered works out to 5.85%. In view of this, the Petitioner is allowed to recover PPAC of 5.85% for 3 months beyond 20/12/2024 i.e., from 21/12/2024 to 20/03/2025. There is variation in Short-term Power Sale quantum as submitted by BYPL and as provided by SLDC in their monthly power purchase report. b) BYPL has not considered the Short-term Open Access (STOA) refund in their computation,” read the order.
The PPAC is levied as a percentage of the base tariff that includes the fixed cost and energy charges (units consumed) by the consumers. PPAC is a surcharge provided by the Delhi Electricity Regulatory Commission (DERC) to cover fluctuations in power purchase costs incurred by the discoms. These costs are generally affected by coal and fuel prices, which have recently seen substantial rises due to increased imports and transportation expenses.
Delhi’s power is distributed by four discoms: BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power Limited (BRPL), Tata Power Delhi Distribution Limited (Tata Power), and North Delhi Municipal Corporation (NDMC). The PPAC varies by discom. The Delhi government provides free electricity to consumers using up to 200 units per month. A fifty per cent subsidy is provided to those having monthly consumption of 201 to 400 units.
Meanwhile, addressing a press conference, Delhi Bharatiya Janata Party (BJP) leader Virendra Sachdeva said that the Delhi Power Secretary has declared a more than 50 per cent reduction in PPAC charges (Power Purchase Adjustment Cost), which had been arbitrarily imposed on electricity bills by the Arvind Kejriwal government in collusion with private power companies.
Sachdeva said the PPAC was 38.12 per cent for BYPL, 35.83 per cent for BRPL and 36.33 per cent for TPDDL which will reduce to 13.62 percent, 18.19 per cent, and 20.52 per cent, respectively. Sachdeva claimed that due to BJP’s efforts, the massive PPAC charges on electricity bills have been reduced by 50%, providing significant relief to consumers.
Sachdeva noted that before the May 2024 Lok Sabha elections, BJP had raised the issue of unethical financial burden imposed on Delhi residents through PPAC. Since the elections, the party organisation and newly elected MPs have actively worked on this issue.
In July 2024, BJP raised the matter publicly and submitted a memorandum to Lieutenant Governor Vinay Kumar Saxena through senior party leaders. Demonstrations were held at the state level and in all 14 organisational districts, and the media revisited the issue in early October. In early December, a delegation from Laghu Bharati met BJP leaders, after which the party again opposed the demand from private electricity companies like BSES Yamuna Power Limited to increase PPAC before the Lieutenant Governor.
On Thursday, a delegation from 32 industrial areas led by BJP spokesperson and Delhi Manufacturers Association President Dr. Anil Gupta met Saxena. In the presence of the Lieutenant Governor, the Delhi Energy Secretary announced reductions of 50% to 60% in PPAC charges in electricity bills for various companies.
Meanwhile, Chief Minister Atishi, who also holds the Power portfolio, stated that this was made possible due to the honest, people-centric governance of the Aam Aadmi Party. “It is only through proper management of the power supply chain and pre-planning that the Delhi Government has been able to achieve this,” Atishi said. She further pointed out that neighbouring cities such as Noida and Gurgaon 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,” she asserted.
