Electricity Bill: Electricity bills in Delhi can now change every month, even if your electricity consumption remains the same. The Delhi Electricity Regulatory Commission (DERC) has proposed a new rule, under which power companies will be allowed to automatically add changes in the cost of fuel and power purchase to the bill every month.
This means that now power companies will not need to take prior approval from DERC for this.
DERC on Wednesday released draft changes to its 2017 tariff rules. It has been informed that Fuel and Power Purchase Adjustment Surcharge (FPPAS) will now be automatically added to the electricity bill every month. Therefore, power companies will use the formula given by DERC. The public and others can give their opinion on the proposal till September 24.
This will be the new rule…
Under this new rule, FPPAS will be calculated every month and included in the bill. This surcharge will be levied on the total cost of electricity and the fixed charge. This surcharge will cover changes in fuel prices, cost of electricity purchase, and changes in interstate or intrastate transmission charges. But this surcharge will be shown in the bill with a delay of two months. For example, changes in April will be shown in the June bill.
DERC has also ensured that this surcharge will not exceed 10% of the total bill. This will protect consumers from sudden and excessive bill increases. If any cost exceeds this 10% limit, it will be adjusted in the following months. Power companies say that the cost of purchasing power is the largest component of their annual revenue. Fluctuations in this cost affect their cash flow. Adjusting this cost every month will strengthen their financial position.
The electricity bill will change every month…
But if the power companies do not give the cost reduction to the consumers on time, they will have to return it with interest. DERC says that the 10% limit is to protect the consumers from sudden big shocks. If any cost exceeds this limit, it will be adjusted later.
The impact of this will be that the electricity bills of consumers may change every month. If the cost of fuel or power purchase increases, the bill will increase, and if the cost decreases, the bill may decrease. This change will be applicable to Delhi power companies such as BRPL, BYPL, TPDDL and NDMC.
