Delhi electricity bills set to rise as DERC approves higher fuel and power purchase adjustment surcharge

Electricity consumers in Delhi are likely to face higher monthly bills after the Delhi Electricity Regulatory Commission (DERC) approved an increase in the Fuel and Power Purchase Adjustment Surcharge (FPPAS), a charge used by discoms to recover rising power procurement costs.

The decision comes amid a surge in fuel prices and global market volatility, which has pushed up the cost of electricity generation and procurement. The surcharge adjustment will mainly impact consumers served by BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL), while those under Tata Power Delhi Distribution Limited (TPDDL) are expected to see minimal changes.

Under the revised structure, BYPL consumers may see the sharpest impact. For a household consuming around 600 units with a 2 kW load, monthly bills could increase by about ₹170. Similar consumers under BRPL may see an increase of around ₹102.

DERC has increased BYPL’s permissible surcharge from 11.71% to 17.43%, while BRPL’s limit has been revised from 14.51% to 17.94%. TPDDL’s surcharge has also been slightly increased to 16%.

Officials stated that the FPPAS mechanism helps discoms recover fluctuating fuel and procurement costs without waiting for a formal tariff revision. The regulator also noted that earlier caps on surcharge recovery have been relaxed in phases due to rising power purchase expenses.

While discoms had sought much higher recovery rates, DERC approved only partial increases, introducing a provision to carry forward unrecovered costs for future adjustment within permissible limits.

Consumers receiving Delhi government electricity subsidies will not be affected, as subsidies are linked to unit consumption rather than total bill amounts.