“Delhi government is continuously looting Delhi through electricity bills. Electricity companies are extorting a hefty amount from the public in the name of PPAC,” stated Delhi BJP president Virendra Sachdeva, igniting a heated debate about the recent surge in electricity bills across the capital. Starting July 1st (2024), Delhi residents have been noticing an increase in their electricity bills due to a rise in the power purchase adjustment charge (PPAC).
What is PPAC, and Why is it Increasing?
PPAC, regulated by the Delhi Electricity Regulatory Commission (DERC), is applied as a surcharge on total energy and fixed charges. It helps discoms manage the fluctuating costs they incur while buying power, primarily influenced by volatile global fuel prices like coal. With these prices experiencing significant instability, the cost of purchasing power has risen, leading to a subsequent hike in PPAC.
How Much Has PPAC Increased?
The PPAC increase impacts all four discoms serving Delhi:
BSES Yamuna Power Limited (BYPL),
BSES Rajdhani Power Limited (BRPL),
Tata Power Delhi Distribution Limited (Tata Power), and
North Delhi Municipal Corporation (NDMC).
For BRPL and Tata Power, the PPAC hike is 8.75%, while for BYPL, it is 6.15%. Factoring in these increases, the total PPAC now stands at 35.8% for BRPL, 37.8% for BYPL, 37.9% for Tata Power, and 38.8% for NDMC.
What does this mean for your Electricity Bill?
A consumer in a BRPL area, for instance, using 600 units of electricity, would experience a bill increase from roughly ₹4523 to ₹4802. Similar increases are applicable across other discoms. However, this adjustment has not affected consumers who receive a subsidy for using up to 200 units. Currently, Delhi has around 65 lakh domestic electricity consumers, with about 60% not paying for electricity during winter months (January to April) due to their consumption remaining under 200 units, which is provided free of cost.
BJP vs. AAP over Delhi Electricity Bills
The BJP has been vocal in its criticism, accusing the AAP government of being complicit in the PPAC hike and alleging mismanagement of power procurement. They argue this has directly resulted in inflated electricity bills for consumers.
However, Delhi power minister Atishi has refuted these claims. She asserts that BJP-ruled states actually experience the highest electricity costs and frequent power cuts, while the AAP government has ensured 24/7 electricity at the lowest rates for Delhi under CM Arvind Kejriwal.
Atishi clarifies that discoms are permitted to increase PPAC by up to 10% during peak summer months to manage increased demand, as per established DERC guidelines.
The Discoms’ Take on Rising Electricity Bills
Discoms have emphasized that PPAC is a statutory mandate, and the process is transparent and validated by the regulator. Without PPAC, discoms would face liquidity stress and may not have enough funds to pay the generators.
However, concerns regarding transparency in the process and whether consumers are disproportionately burdened by inefficiencies in power procurement remain. The debate surrounding Delhi’s electricity bills is far from over. It remains to be seen how the government and discoms will address these valid concerns and ultimately deliver affordable and reliable electricity for all residents.
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