NEW DELHI: The New Delhi Municipal Council (NDMC) has announced that electricity tariffs for consumers in its jurisdiction will remain unchanged, despite a recent order from the Delhi Electricity Regulatory Commission (DERC) proposing an increase in power costs.
The announcement was made at a press conference by NDMC Chairperson Keshav Chandra and Vice Chairman Kuljeet Singh Chahal.
The decision comes in response to the DERC’s Power Purchase Adjustment Cost (PPAC) order dated December 31, 2024.
While PPAC surcharges are designed to offset variations in power purchase costs incurred by distribution companies, NDMC has decided not to pass this additional cost on to its nearly 70,000 power consumers, 60% of whom are domestic users. The council emphasized its commitment to maintaining stable electricity rates despite challenges.
NDMC highlighted that DERC has not issued a comprehensive tariff order since the fiscal year 2021-22. Instead, PPAC petitions are filed quarterly to reflect the difference between the actual power purchase cost and the cost mandated by DERC.
These orders are reconciled during the truing-up process for distribution companies.
VC Chahal said that the NDMC area residents would not bear the burden of the increased power purchase costs.