Delhi power consumers get relief as discoms freeze purchase adjustment cost
Delhi power consumers got relief this month as discoms kept purchase adjustment cost unchanged, ensuring no fresh increase in electricity bills.
Delhi consumers have received relief on their electricity bills as the city's power distribution companies have decided not to increase the Power Purchase Adjustment Cost (PPAC) for July, despite being permitted by the Delhi Electricity Regulatory Commission (DERC) to recover higher power procurement costs through the Fuel and Power Purchase Adjustment Surcharge (FPPAS).
According to the latest PPAC rates notified by the discoms, BSES Rajdhani Power Limited (BRPL) has retained its PPAC at 17.94 per cent, while BSES Yamuna Power Limited (BYPL) has kept it unchanged at 17.43 per cent. Tata Power Delhi Distribution Limited (TPDDL), meanwhile, has reduced its PPAC to 12.21 per cent from 15.99 per cent in June, providing additional relief to its consumers.
The development comes after the DERC allowed the discoms to recover a portion of the increased power purchase costs incurred in May 2026. The utilities had approached the regulator seeking relaxation, arguing that actual power procurement expenses during the month were significantly higher than the approved base power purchase cost.
In its July 10 order, the DERC calculated the FPPAS for May at 25 per cent for BRPL, 19.91 per cent for BYPL and 12.21 per cent for TPDDL. Under existing regulations, discoms can normally recover up to 10 per cent FPPAS in a billing cycle. However, the Commission permitted additional recovery to help utilities offset a reasonable portion of the increased costs.
Despite the regulatory approval, the latest PPAC notifications indicate that consumers will not face any fresh increase in surcharge this month. While BRPL and BYPL have maintained their existing PPAC rates, TPDDL has lowered its rate compared to June.
As a result, electricity bills in Delhi are not expected to rise on account of PPAC in July, offering relief to consumers amid concerns over rising power demand and higher electricity procurement costs during the summer season.
Delhi consumers have received relief on their electricity bills as the city's power distribution companies have decided not to increase the Power Purchase Adjustment Cost (PPAC) for July, despite being permitted by the Delhi Electricity Regulatory Commission (DERC) to recover higher power procurement costs through the Fuel and Power Purchase Adjustment Surcharge (FPPAS).
According to the latest PPAC rates notified by the discoms, BSES Rajdhani Power Limited (BRPL) has retained its PPAC at 17.94 per cent, while BSES Yamuna Power Limited (BYPL) has kept it unchanged at 17.43 per cent. Tata Power Delhi Distribution Limited (TPDDL), meanwhile, has reduced its PPAC to 12.21 per cent from 15.99 per cent in June, providing additional relief to its consumers.
The development comes after the DERC allowed the discoms to recover a portion of the increased power purchase costs incurred in May 2026. The utilities had approached the regulator seeking relaxation, arguing that actual power procurement expenses during the month were significantly higher than the approved base power purchase cost.
In its July 10 order, the DERC calculated the FPPAS for May at 25 per cent for BRPL, 19.91 per cent for BYPL and 12.21 per cent for TPDDL. Under existing regulations, discoms can normally recover up to 10 per cent FPPAS in a billing cycle. However, the Commission permitted additional recovery to help utilities offset a reasonable portion of the increased costs.
Despite the regulatory approval, the latest PPAC notifications indicate that consumers will not face any fresh increase in surcharge this month. While BRPL and BYPL have maintained their existing PPAC rates, TPDDL has lowered its rate compared to June.
As a result, electricity bills in Delhi are not expected to rise on account of PPAC in July, offering relief to consumers amid concerns over rising power demand and higher electricity procurement costs during the summer season.
