Delhi’s Electricity Bill to Reduce by up to 6 per Cent

DERC’s permission to power company to levy fuel surcharge or power purchase adjustment cost (PPAC) lapses on March 15

DERC’s permission to power company to levy fuel surcharge lapses on March 15. The image is used for representational purpose. (Photo: iStockphoto)

There’s Good news for Delhiites. The electricity bills are expected to go down by up to six per cent as the permission to power distribution companies to levy the fuel surcharge or power purchase adjustment cost (PPAC) by the Delhi Electricity Regulatory Commission has lapsed on March 15.

All three power distribution companies cannot impose any fuel surcharge on the electricity bills which will lead to a reduction of bills by upto six per cent. The Delhi Electricity Regulatory Commission (DERC) had allowed power discoms to levy the PPAC surcharge following a directive from the Appellate Tribunal for Electricity (APTEL) since June 15, 2015.

For last nine months, the consumers had to pay four to six per cent fuel surcharge with their bills. People living in North and North-West Delhi, where Tata Power Delhi Distribution Limited distributes electricity, will now see a reduction of around four per cent in their monthly electricity bills while consumers of BSES Rajdhani Power Limited and BSES Yamuna Power Limited will see a cut of six per cent in their power bills.

After March 31, the discoms are expecting an annual power tariff revision. The revision is pending since 2014 as the AAP government was against any hike.

The government had also forced DERC not to allow any hike in power bills in 2015. Sources said power distribution companies will review their power purchase costs for the January-March quarter of the current year and submit fresh petitions for PPAC only after they receive the power bills from National Thermal Power Corporation.