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Electricity Bill Increase: Big news! Electricity bill rates may increase by up to 10% in May-June, check details

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Delhi Electricity Bill increase: Earlier this month, the Delhi Electricity Regulatory Commission (DERC) issued separate orders allowing the capital’s three main discoms to charge PPAC for the third quarter of 2024-25 during the current billing cycle.

Delhi Power Tariff Hike: This summer is going to be more troublesome for Delhiites. In the summer season, the electricity bill is already very high due to coolers and ACs, but this season people may have to face a double blow. People will not only have to pay higher bills due to AC or cooler, but a new charge will also be responsible for it.

In fact, after the amendment in the Power Purchase Adjustment Cost (PPAC) imposed by the power distribution companies (Discoms) in Delhi, electricity bills (Delhi Electricity Price Hike) are likely to increase by 7-10% during May-June.

PPAC (Power Purchase Adjustment Cost) reflects the increase in fuel cost, which power generation companies charge from consumers. According to reports, the discom has changed the rates of PPAC, the effect of which will be seen by Delhiites in the bills of the next two months.

Discom companies allowed to collect PPAC for the third quarter

Earlier this month, the Delhi Electricity Regulatory Commission (DERC) issued separate orders allowing the three main discoms of the capital to collect PPAC for the third quarter of 2024-25 during the current billing cycle.

The PPAC rates have been approved at 7.25 per cent for BSES Rajdhani Power Limited (BRPL), 8.11 per cent for BSES Yamuna Power Limited (BYPL) and 10.47 per cent for Tata Power Delhi Distribution Limited (TPDDL).

The discoms have not yet commented publicly on the PPAC hike. However, the move has been heavily criticized by the United Residents of Delhi (URD). URD is an organization representing resident welfare associations across the city.

PPAC percentage should be same for all discoms: Saurabh Gandhi

URD general secretary Saurabh Gandhi called the hike “arbitrary” and said the decision was taken without following due process of law. He said stakeholders were not given enough time to present their views during the virtual public hearing.

Saurabh Gandhi also hit out at the different percentages approved for the three discoms. “Since the fuel surcharge under Section 64(4) is almost the same for all discoms, the PPAC percentage should also have been the same,” he argued.

Decision taken to prevent any interruption in power supply

In response, discom sources defended the surcharge, saying it was in accordance with DERC regulations and aimed at recovering the rising generation costs in a timely manner so that there is no interruption in power supply. He said it varies due to different billing cycles of companies and different fuel sources. He also said that without PPAC, discoms will face a cash crunch, which may lead to shortage of money to make timely payments to power generation companies.

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Deepak Kumar
Deepak Kumar
Deepak Kumar has 2 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @deepakmaurya152004@gmail.com
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