Electricity Price Hike: Major shock to common people. If you live in Delhi, your electricity burden is going to increase slightly in the coming days. The Delhi Electricity Regulatory Commission (DERC) has approved an increase in the Power Purchase Adjustment Cost (PPAC), or surcharge, for power companies.
Simply put, the additional cost incurred by power companies in purchasing electricity will now be recovered from consumers. This increased charge has come into effect from June, the direct impact of which will be visible in your electricity bill coming in July.
How much will the bill increase in your area?
The rise in your bill will vary based on the electricity provider in your area:
East and Central Delhi (BYPL): If your electricity comes from ‘BSES Yamuna’ (BYPL), you can expect your bill to increase by roughly 5.7%.
South and West Delhi (BRPL): For those in the ‘BSES Rajdhani’ (BRPL) region, your bill is anticipated to rise by about 3.4%.
North Delhi (TPDDL): Tata Power customers will experience a slight increase, with the surcharge going from 15.9% to 16%, which means it won’t have a major effect on your bill.
Understanding the financial impact based on usage
Depending on your monthly electricity consumption, here’s how much extra you might need to pay:
Consumers in East and Central Delhi served by BYPL could pay around Rs 92 extra for 400 units of monthly consumption and about Rs 170 more for 600 units. In South and West Delhi, BRPL consumers may see an increase of approximately Rs 56 for 400 units and Rs 102 for 600 units per month.
Will there be any effect on subsidies?
This increase will not influence the electricity subsidy offered by the Delhi government. The subsidy is based on the number of units consumed, not the overall bill amount. Thus, users consuming up to 200 units of electricity monthly will still receive free electricity as before.
What is causing the price hike?
Power companies explain that the extreme heat in April led to a sudden spike in electricity demand in Delhi. To satisfy this demand, companies had to buy electricity from the market at elevated prices. Since the cost of purchasing electricity constitutes about 80% of the total expenses for Delhi’s power companies, the rising prices of coal and gas, or the need to buy more expensive electricity, directly affect consumer bills.