While the recent weather change has brought some respite from the scorching heatwave, Delhi residents are set to feel the heat with electricity bills in for a tariff hike after the Delhi Electricity Regulatory Commission (DERC) approved the recovery of monthly Power Purchase Adjustment Charges (PPAC), replacing the earlier quarterly system.
The move means power distribution companies will now be allowed to recover fluctuations in electricity purchase costs from consumers every month. The revised charges will vary across the city's three power distribution companies.
Distributor-wise tariffs
Consumers in areas served by Tata Power Delhi Distribution Limited (TPDDL) will see their bills increase by around 1 per cent. Residents in BSES-operated areas are expected to pay 2.5 per cent to 3.5 per cent more.
DERC on Saturday approved the recovery of April 2026 PPAC/FPPAS charges for BRPL, BYPL and TPDDL. The regulator permitted a PPAC of 17.94 per cent for BRPL, 17.43 per cent for BYPL and 16 per cent for TPDDL.
What is PPAC?
PPAC is a statutory mechanism that allows power distribution companies to pass on fluctuations in electricity procurement costs, such as changes in coal, fuel and power purchase prices, to consumers.
According to officials, more than 25 states and Union Territories already implement the mechanism. It is mandated under the Electricity Act, the Ministry of Power's guidelines and judicial orders.
DERC said allowing the recovery of these costs helps distribution companies maintain liquidity and make timely payments to power generators. Without such adjustments, utilities could face financial stress, eventually increasing costs for consumers through accumulated interest liabilities.
Impact on consumers
The regulator said consumers receiving electricity subsidies from the Delhi government will not be affected. Since the subsidy is linked to electricity consumption slabs rather than the bill amount, households availing benefits for up to 500 units of consumption will continue to receive the same support.
However, non-subsidised consumers, including high-consumption households and commercial users, may see an additional surcharge of around 7 to 18 per cent in their bills for April 2026.
Why prompted the price hike
Officials said electricity procurement costs rose sharply in April 2026 due to higher coal and fuel prices as well as increased import costs. The introduction of monthly PPAC is aimed at reflecting these costs more quickly in consumer tariffs.
Delhi Power Minister Ashish Sood said the increase was in line with legal provisions governing electricity pricing.
"There is a provision in law for increasing PPAC. The situation in West Asia over the past few months has impacted fuel prices, resulting in higher power procurement costs for distribution companies. Therefore, DERC has approved the PPAC increase," Sood said.
He added that the move would not affect consumers receiving electricity subsidies.
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