Delhi Electricity Regulatory Commission (DRC) has ordered to reduce the power purchase adjustment charge (PPC) being charged from power companies in the bills by up to 60%, which has given a big relief to the electricity consumers of Delhi before the assembly elections. There will be relief in all the bills coming in Delhi after December 21. This order will reduce PPAC fees till March 2025.
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BJP had filed a petition in DERC regarding PPAC charges in electricity bill. Last month, power supply company BSES Rajdhani Power Limited (BRPL) is charging 35.83%, BSES Yamuna Power Limited (BYPL) 37.75% and Tata Power Delhi Distribution Limited (TPDDA) is charging 37.88% PPC. A petition was filed in DRC.
On BJP's petition, DERC has issued a new order regarding PPAC charges, according to which now BYPL will charge 13.63 percent, BRPL 18.19 percent and TPDDL 20.52 percent PPAC. Whatever electricity bill will be issued in Delhi after December 21, the new rates of PPAC fee will be applicable. BYPL and BRPL have also implemented new rates in new bills in their areas.
Reduction of 20 to 25 percent in the total bill: Electricity experts believe that the relief in PPAC fee will reduce the electricity bill by 20 to 25 percent. For example, suppose you consume electricity worth Rs 100 in a month, on which 35.83 percent PPAC charge is applicable, then your total bill will be Rs 135.86. After deducting PPAC, total bill of Rs 100 will be 18.19 per cent, i.e. bill of 118.19 per cent. Now surcharge, pension surcharge and other rates will be applicable on this bill, this will reduce your total bill by 20 to 25 percent.
What is PPC fee?
A part of the electricity bill is the Power Purchase Adjustment Charge (PPC), which the supply companies spend on transmission (moving electricity through wires to homes) from purchasing electricity to delivering it to the consumer. Additionally, when demand for electricity increases, they buy electricity from other companies, the cost of which fluctuates with demand. It is determined by taking out costs at the beginning of each financial year; The PPAC charge in Delhi was first increased by 9% in May 2024, before which it was also increased by 10% in July 2023.
