Delhi consumers should brace for higher electricity bills this June after the Delhi Electricity Regulatory Commission (DERC) approved an increase in the fuel surcharge cap. The DERC has reportedly raised the Power Purchase Agreement Adjustment Cost (PPAC) limit from 10 per cent to 16-17 per cent.
As a result, consumers across the national capital are likely to see an increase in their June electricity bills. However, domestic consumers using up to 400 units of electricity per month will remain protected under the Delhi government's existing subsidy scheme.
Currently, electricity distribution companies are allowed to recover up to 10 per cent through the Fuel and Power Purchase Adjustment Surcharge (FPPAS). With the revised cap now set at 16-17 per cent, power companies will be able to recover a larger portion of their increased fuel and power procurement costs from consumers.
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How Much Will Bills Increase?
Delhi has three electricity distribution companies, and the impact of the revised PPAC will vary across their service areas.
Consumers in Tata Power Delhi Distribution Limited (TPDDL) areas will see their bills rise by around 1 per cent. Meanwhile, residents in BSES-served areas are expected to pay 2.5 to 3.5 per cent more on their electricity bills.
The hike is expected to have the biggest impact on commercial and industrial consumers. In addition to the revised surcharge, power companies are also set to recover the pending 10 per cent arrears from March, adding to the burden on June bills.
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Electricity Costs for Shops and Factories Set to Rise
According to NDTV report, electricity prices in Delhi are set to increase, prompting concerns among traders and industrial units.
Chamber of Trade and Industry (CTI) Chairman Brijesh Goyal has written to Chief Minister Rekha Gupta, warning that the increase could significantly affect businesses. He stated that shop owners in major markets such as Karol Bagh may have to pay an additional Rs 4,000 to Rs 5,000 in electricity charges compared to businesses operating in neighbouring areas of Uttar Pradesh and Gurugram.
Goyal also warned that rising electricity costs could make manufacturing more expensive, leading to higher product prices. He noted that commercial and industrial electricity tariffs in Delhi could become 15-20 per cent higher than those in neighbouring Haryana and Uttar Pradesh.
Prices of several essential commodities and fuels, including milk, petrol, diesel, LPG, and CNG, have already witnessed upward pressure. With electricity costs also set to rise, consumers in Delhi may soon face another increase in household and business expenses.