DERC allows additional hike in fuel & power surcharge; monthly electricity bills to rise further in Delhi

Delhi’s power regulator, DERC, has allowed city distribution companies to impose an “additional” fuel and power purchase adjustment surcharge (FPPAS) of up to 8 per cent on consumers for a second month, which could inflate monthly electricity bills further, officials said on Monday.

Last month, the Delhi Electricity Regulation Commission (DERC) permitted the power discoms to impose additional FPPAS for April at the rate of 7.94 per cent in case of BRPL, 7.43 per cent in case of BYPL and 6 per cent in case of TPDDL.

Three power discoms in June and July had sought relaxation from the DERC on the ground that the actual power purchase cost for May month increased significantly as compared to the prevailing base power purchase cost.

As per the DERC regulations, there is a cap of 10 per cent on the FPPAS recoverable in a billing cycle. Also, the FPPAS is determined by the DERC monthly. It is calculated as a percentage of the total of the fixed charge and the energy charge of a consumer.

An order issued by the DERC on July 10 stated that the FPPAS for May was calculated at 25 per cent for BRPL, 19.91 per cent for BYPL, and 12.21 per cent for TPDDL.

The DERC has allowed the discoms to recover, in addition to the capped FPPAS of 10 per cent, the additional FPPAS for May, thereby removing the difficulties they faced in recovering “at least the reasonable part of the increase” in power purchase costs, according to the order.

The additional FPPAS is permitted at the rate of 7.94 per cent in respect of BRPL, 7.43 per cent in case of BYPL, and 2.21 per cent in case of TPDDL. The total FPPAS permitted to be recovered is 17.94 per cent in case of BRPL, 17.43 per cent in case of BYPL and 12.21 per cent in case of TPDDL for the month of May 2026, said the DERC order.

The relaxation will be applicable on a month-to-month basis till further order by the Commission, it added.