Delhi electricity bills are expected to increase after DERC approved an additional fuel and power purchase adjustment surcharge to help discoms recover higher power procurement costs.
Electricity consumers in Delhi may see a rise in their monthly bills after the Delhi Electricity Regulatory Commission (DERC) approved an additional Fuel and Power Purchase Adjustment Surcharge (FPPAS). The surcharge has been introduced to help power distribution companies recover the impact of higher electricity procurement costs.
This development follows reports of rising cost from the purchase of electricity by the Discoms. Since costs of generating and buying power vary with the variation of prices of fuel and other factors, the FPPAS system enables firms to adjust the extra costs through consumers’ bills.
The authorised surcharge is going to be different for each electricity distribution company operating in Delhi. In case of BRPL and BYPL, there will be more adjustments, but TPDDL will have a relatively lower surcharge rate.
DERC stated that the adjustment was allowed after reviewing the difference between actual power purchase expenses and the existing cost estimates. The commission reviews such charges periodically to ensure that changes in power supply costs are reflected in electricity tariffs.
FPPAS has been developed to give financial assistance to the discoms so that they can recover more money without having to go for a full tariff revision for electricity. However, the rise in the surcharge will increase the cost of electricity for the consumers, particularly for those who consume more electricity.
The additional charge will continue to remain applicable according to regulatory regulations until further notices come from DERC. This is indicative of the burden that has been placed upon electricity distribution companies as far as the increasing cost of procuring electricity and providing affordable electricity is concerned.
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