Electricity bill will come in Delhi
The electricity bill will be 7-10 percent higher in the months of May and June in Delhi. Officials said on Sunday that Discom has changed the rates of PPAC. Its effect will be seen in the bill of the next two months. Power procurement adjustment cost (PPAC) refers to the increase in the cost of fuel (coal, gas) made by power generation companies, which discoms recover from consumers. It is calculated as a fixed fee and energy fee (units consumed) components of the electricity bill.
The Delhi Electricity Regulatory Commission (DERC), in its different orders earlier this month, allowed the three discoms to recover the PPAC for the third quarter of 2024-25 in the period of May-June 2024. 7. 25 percent for BRPL, 8. 11 percent for BYPL and 10 for TPDDL, 47 percent PPAC has been allowed.
URD said- this arbitrary step
The United Residents of Delhi (URD), a umbrella organization of Resident Welfare Association in the city, condemned the move, describing it as “arbitrary”. URD general secretary Saurabh Gandhi said in a statement, “The process under which the PPAC fee has been imposed on the people of Delhi by DERC is legally wrong.” There was no immediate response from DERC on this charge. Gandhi claimed, “The Commission has been benefiting from other items to the power companies for the last several years. Now the commission that we have made, it was highly expected to complete the tariff determination by following the prescribed process, but this commission made a virtual public hearing, in which the stakeholders were not given enough time to present their stand.”
Different rates for each discom
It is also a fact that the PPAC provided by the PPAC and DERC claimed by different discoms is different. He said that this is 7.25 percent for BRPL, 8.11 percent for BYPL and 10.47 percent for TPDDL. Gandhi said, “Since the cost of fuel surcharge under Section 64 (4) is almost the same for all discoms, the percentage difference should have been the same.”
Why PPAC rates increased
Discom sources defended the PPAC and stated that it is in line with the regulation orders of DERC issued in different time periods for different discoms. He said, “PPAC recovery is done to deliver the cost to the consumer on time, which depends on the prices of coal and gas. It is a statutory order and the process is very transparent and valid by the regulator.” Sources said that there would be cash pressure on discom without PPAC and they would not have money to pay for power generation companies. (Input-PTI)
