PPAC is a way to pass on the increase in the cost of purchasing power from power generating companies to consumers. Due to cost of coal and fuel, purchasing electricity had become expensive.
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Delhi’s electricity consumers are going to get a big shock. Delhi Electricity Regulatory Commission (DERC) today has given permission to the three power companies BRPL, BYPL and TPDDL to collect additional charge called Power Purchase Adjustment Charge (PPAC) for April 2026.
This is the first monthly PPAC in Delhi. Earlier this used to happen every three months. In such a situation, electricity in the capital may become costlier by 1 to 3.30 percent. Now electricity rates will be reviewed every month. It is being said that spending more than 500 units will result in increased bill. This will not affect those who spend 200-400 units. There will be increased electricity bill in the month of June.
What is PPAC?
PPAC is a way to pass on the increase in the cost of purchasing power from power generating companies to consumers. Due to cost of coal and fuel, purchasing electricity had become expensive. This is already going on in more than 25 states of the country. This is necessary as per law and court order.
How much will PPAC cost this time?
-BRPL (South Delhi): 17.94 percent
– BYPL (East Delhi): 17.43 percent
-TPDDL (North and West Delhi): 16 percent
DERC has given permission much less than the demand of the companies.
What is the impact on common Delhiites?
There will be no additional burden on those taking subsidy from this increase i.e. those taking benefit of 200 to 500 units. Delhi government’s subsidy is based on units and not on the bill amount, hence there will be no increase in the bill due to PPAC. Those who spend more electricity or those who are out of subsidy may face an additional surcharge of seven to 18 percent on their electricity bill in April.
What does the new rule ‘F’ say?
If any amount is left in the subsequent months, it will be recovered gradually later.
Why was this decision taken?
Electricity companies (DISCOMs) have to pay money to generators on time. If PPAC is not taken, the companies will face financial crisis, whose interest burden will ultimately fall on the consumers. Taking PPAC on time reduces the interest burden.
At the same time, according to power expert BS Vohra, DERC had allowed DISCOMs to impose maximum FPPAC of 10 percent on the billing cycle, but as always, DISCOMs want to recover more than this and surprisingly, DERC allows this without any CAG audit, putting a heavy burden on the consumers.
Apart from this, a huge burden of regulatory assets amounting to approximately Rs 38,500 crore also has to be recovered from the consumers. This is a serious financial burden on the electricity consumers of Delhi. Delhi government should immediately intervene in this matter and thoroughly review it.
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