NEW DELHI: In a move that will bring significant relief to the people of Delhi, a surcharge levied on power bills has been drastically reduced in the city, said the Delhi government on Friday.
The Power Purchase Adjustment Charge (PPAC) rates, which were previously 27.08% for BRPL, 31.6% for BYPL, and 29.33% for TPDDL, have been reduced to 18.19%, 13.63%, and 20.52%, respectively. This reduction will result in lower electricity bills for all consumers across Delhi Chief Minister Atishi, who also holds the Power portfolio, stated that this was made possible due to honest AAP governance.
The chief minister highlighted that the government has consistently prioritised shielding consumers from excessive tariff hikes by ensuring that power distribution companies (DISCOMs) adhere to the regulations set by the Delhi Electricity Regulatory Commission (DERC). The DERC, as the sole authority responsible for approving the PPAC levied by DISCOMs, operates under its Tariff Regulations 2017 framework, which outlines the mechanism, frequency, formulation, approval process, recovery, and adjustments related to the PPAC.
“It is only through proper management of the power supply chain and pre-planning that the Delhi Government has been able to achieve this,” Atishi said. She further pointed out that neighbouring cities such as Noida and Gurgaon not only have high tariffs but also experience frequent power cuts during summer. “In Delhi, on the other hand, people enjoy 24-hour power supply and, in many cases, zero electricity bills due to our policies,” she asserted.
Why was PPAC higher during Summer 2024?
During this year’s summer, Delhi experienced an unprecedented peak in electricity demand. In order to ensure 24-hour uninterrupted supply of power, the DISCOMs purchased electricity at prevalent market rates, leading to higher PPAC.
Additionally, in October 2023, the central government mandated all thermal power plants to continue blending imported coal with domestic coal to address supply shortages and rising electricity demand. The blending proportion of expensive imported coal was increased from 4% to 6%, resulting in higher costs for electricity-generating companies. This, in turn, raised power purchase costs for DISCOMs.
Reasons for Lower PPAC in December 2024
Electricity demand and consumption usually decline in winter, leading to lower power procurement and reduced overall power purchase costs. The blending proportion of imported coal was also reduced back to 4% (from 6% earlier) until mid-October 2024. After October 15, the requirement for blending imported coal was removed entirely, resulting in significantly reduced generation costs and lower electricity bills for consumers.
Our efforts led to PPAC reduction, claims BJP
Delhi BJP chief Virendra Sachdeva said before Lok Sabha elections, the party raised the issue of unethical financial burden imposed on Delhi residents through PPAC. Since the elections, the party organization and newly elected MPs have actively worked on this issue.