Live in Delhi and use over 500 units of electricity? Your power bill could go up
Delhi residents consuming more than 500 units of electricity a month could see higher power bills after the Delhi Electricity Regulatory Commission (DERC) allowed power
Delhi residents consuming more than 500 units of electricity a month could see higher power bills after the Delhi Electricity Regulatory Commission (DERC) allowed power distribution companies to recover a higher Power Purchase Adjustment Charge (PPAC). The move comes amid rising electricity procurement costs and will mainly affect consumers who are not covered under the Delhi government's electricity subsidy schemes. Consumers receiving either full or 50 per cent subsidy will not face any additional burden, according to the government. Read Full Story Delhi Power Minister Ashish Sood said the increase was permitted under existing legal provisions and was linked to higher fuel costs. "There is a provision under the law to increase PPAC. Therefore, DERC has approved the increase. Fuel prices have risen because of the ongoing tensions in the Middle East, and that has increased costs for power companies," Sood said. WHAT HAS CHANGED? Till March 2026, Delhi's fuel and power purchase adjustment charge was imposed on a quarterly basis. From the April billing cycle, however, DERC has shifted to a monthly review and recovery mechanism.
Officials said this is the first such monthly order issued by the regulator. Under the new order, power distribution companies will be allowed to recover a larger share of the additional costs incurred while purchasing electricity. According to Sood, the PPAC being recovered from consumers was around 14.5 per cent earlier and has now increased to 17.9 per cent, translating into an increase of about 3.4 percentage points. WHO WILL BE AFFECTED? The biggest impact is expected on consumers who are outside the subsidy framework and those with higher electricity consumption. Officials said households receiving electricity subsidies from the Delhi government will continue to get the benefit because the subsidy is linked to units consumed rather than the bill amount. As a result, consumers receiving full or 50 per cent subsidy are unlikely to see any impact from the latest PPAC revision. However, households consuming more than 500 units of electricity a month could see higher bills depending on their usage and applicable surcharge. WHY HAVE COSTS GONE UP?
According to officials, power purchase costs have increased significantly in recent months. DERC said electricity distribution companies had informed the regulator that the actual cost of procuring power in April was much higher than the base cost considered under the existing tariff order issued on September 30, 2021. Officials also pointed to a rise in coal prices due to higher imports and transportation costs. At the same time, the Delhi government has linked the increase in electricity procurement costs to rising fuel prices amid ongoing tensions in the Middle East. WHAT DID DERC APPROVE? The three power distribution companies - BRPL, BYPL and TPDDL - had approached DERC seeking relaxation from the existing 10 per cent cap on fuel and power purchase adjustment surcharge recovery. According to the regulator's order, the FPPAS for April stood at 31.5 per cent for BRPL, 35.26 per cent for BYPL and 16 per cent for TPDDL. DERC, however, did not permit full recovery. Instead, it allowed BRPL to recover an additional 7.94 per cent surcharge and BYPL an additional 7.43 per cent surcharge.
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