Under the wraps, consumers of the BSES Yamuna Power Limited (BYPL) have experienced an additional 6.15 per cent hike, while BSES BSES Rajdhani Power Limited (BRPL), Tata Powers Delhi Distribution Limited, and New Delhi Municipal Council (NDMC) consumers saw an 8.75 per cent increase each in their electricity tariff for the month of July.
While the Delhi Electricity Regulatory Commission (DERC) is yet to revise the basic electricity tariff which traditionally undergoes an annual review, Delhi BJP leaders lambasted the Arvind Kejriwal Government for hike in power bills.
Delhi Power Minister Atishi, however, slammed BJP for spreading false rumours about rising electricity prices in the national Capital, asserting that BJP-ruled States suffer from the highest electricity costs and frequent power cuts.
For BSES, BRPL consumers which serves South and West Delhi, the Power Purchase Agreement Cost (PPAC) has gone up to 35.83 per cent. This translates into a base price adjustment from Rs3.00 to Rs4.07 per unit for 0-200 units of consumption. Similarly, for higher consumption brackets, rates have surged.
For example, users consuming 201-400 units will now pay Rs6.11 per unit, compared to Rs4.50 in the 2021-22 tariff order, and those consuming above 1,200 units will pay Rs10.87 per unit, up from Rs8. .The PPAC is power purchasing agreement cost which is between the power generation companies and power distribution companies.
BSES BYPL, which is catering to East and Central Delhi, consumers face an even steeper PPAC of 37.75 per cent. The new rate for the 0-200-unit bracket is Rs4.12 per unit, with higher consumption brackets also seeing marked increases.
The rate for 201-400 units now stands at Rs6.18 per unit, and for those exceeding 1,200 units, it has soared to Rs11.00 per unit.
Similarly, Tata Power Delhi Distribution Limited (TPDDL) has seen its PPAC rise to 37.88 percent. The cost for 0-200 units is now Rs4.14 per unit, escalating significantly in higher brackets. For 201-400 units, the rate is Rs6.20 per unit and Rs11.03 per unit for over 1,200 units consumption.
NDMC consumers are hardest hit, with a PPAC of 38.75 per cent. The new rate for 0-200 units is Rs 4.16 per unit. For higher usage categories, the rates now stand at Rs 6.24 for 201-400 units and Rs 11.10 per unit for consumption exceeding 1,200 units.
The increase in electricity rates has been made under Power Purchase Adjustment Cost (PPAC). This adjustment is made to cover the costs that power distribution companies incur while purchasing electricity from power generation companies. The higher costs are then passed on to consumers through their electricity bills.
Sources said PPAC is a surcharge provided by the Electricity Regulatory Commission to meet the variation in the Power Purchase Costs incurred by the Discoms.
"The Power Purchase cost is dependent upon the coal / fuel prices. Recently, there has been significant increase in coal prices due to higher imports and transport costs. PPAC is recovered to ensure the timely pass-through of costs to the consumer, as any delay would further burden them with interest costs, which is detrimental to their interests. PPAC is a statutory mandate, and the process is highly transparent and validated by the regulator. Without PPAC, discoms would face liquidity stress and lack the funds necessary to pay the generators. It is important to note that PPAC represents the recovery of money already paid to the generators for power purchases," sources said.
According to sources, across the country, more than 25 States/UTs have implemented fuel surcharge adjustment formula/mechanism pursuant to the APTEL directions dated 11.11.2011,which has reached up to 50 per cent. Gujarat, including Surat and Ahemdabad, have PPAC surcharge of up to 50 per cent.
"In case PPAC does not exceed 5 per cent for any quarter, the Distribution Licensee may levy PPAC at 90 per cent of computed PPAC with prior intimation to the Commission without going through the regulatory proceedings. In case PPAC exceeds 5 per cent but does not exceed 10 per cent for any quarter, the distribution licensee may levy PPAC of 5 per cent and 75 per cent of balance PPAC (actual PPAC - 5 per cent) with prior intimation to the commission without going through the regulatory proceedings," sources said.
