DERC revises surcharge, bills set to be cheaper

The Delhi Electricity Regulatory Commission (DERC) has reduced the power purchase adjustment cost (PPAC) — a surcharge component in electricity bills — by nearly half, which will likely result in lower bills for consumers in parts of the city, people aware of the matter said on Friday.

- Alok KN Mishra

The PPAC component in electricity bills is meant to offset the increase in the cost of the electricity that discoms buy from power generation companies, and prices may vary depending on what part of the Capital a consumer resides in, and on the price of coal.

The rate can be revised once every quarter, and remains valid for three months. It is revised following the approval of DERC. Before Friday's development, officials said, the PPAC for BRPL — which supplies power in south and west Delhi — was 35.83%, and this has now been revised to 18.19%. The surcharge for BYPL, which supplies power in east Delhi, was earlier 38.12% and has now been revised to 13.63%. Tata Power DDL (TPDDL) — which supplies power in north Delhi — has had its PPAC slashed from 36.33% to 20.52%, according to DERC.

However, a petition by New Delhi Municipal Corporation — which supplies power in and around Lutyens Delhi — to revise the surcharge is still pending before the commission.