PPAC component of power bill reduced, relief for consumers in Delhi: Officials

The Power Purchase Adjustment Charges (PPAC) in Delhi have been significantly reduced, offering relief to the city’s residents who can now expect lower electricity bills, officials announced on Friday.

According to discom officials, the previous (September) PPAC rates were 37.88% for Tata Power Delhi Distribution Limited (TPDDL), 37.75% for BSES Yamuna Power Limited (BYPL), and 35.83% for BSES Rajdhani Power Limited (BRPL). The revised rates (December) are now 20.52% for TPDDL, 13.63% for BYPL, and 18.19% for BRPL.

“This will bring a substantial reduction in monthly electricity bills for consumers,” an official stated.

The BJP claimed credit for the decision, with Delhi BJP president Virendra Sachdeva describing it as a victory for party workers who protested against discoms and the AAP government for “exploiting” honest consumers under the guise of PPAC. He attributed the reduction to BJP-led protests and the intervention of Lieutenant Governor V.K. Saxena.

Sachdeva, citing orders from the Delhi Electricity Regulatory Commission (DERC), said at a press conference that “the PPAC imposed by the three discoms has been reduced by over 50%, leading to a 20-25% drop in consumer bills.”

The PPAC, added to electricity bills, compensates for increases in power procurement costs due to factors like rising fuel prices or policy changes. It is calculated as a percentage of the fixed charge and energy charge (units consumed) in power bills.

As per the Electricity Act, Rules, and orders by the Appellate Tribunal for Electricity (APTEL), the Central Electricity Regulatory Commission (CERC) permits central generation companies like NTPC and NHPC to recover their costs monthly. However, Delhi discoms can only levy PPAC on a post-facto quarterly basis with DERC approval.

Officials explained that the PPAC ensures timely recovery of adjustment costs, preventing additional interest burdens on consumers. Without PPAC, discoms would face liquidity issues and struggle to pay power generation companies.

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BS Vohra, president of the East Delhi Resident Welfare Association Front, welcomed the revised charges as a significant relief for power consumers in Delhi. He noted that continuous increases in recent years had burdened the middle class and expressed hope for further reductions.

For BRPL and BYPL, the previous PPAC rates were valid until December 20, 2024. In the latest order dated December 20, 2024, the DERC has allowed recovery of costs for the second quarter of FY 2024-25. For TPDDL, the existing PPAC remains applicable until January 31, 2025, with a new petition pending before the DERC that may result in updated charges in the coming weeks.

(With inputs from PTI)