7/14/22, 12:51 PM PPA: Electricity bills in Delhi go up with 4% rise in PPA cost - The Economic Times

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Business News › Industry › Energy › Power › Electricity bills in Delhi go up with 4% rise in PPA cost

Electricity bills in Delhi go up with 4% rise in PPA

cost
PTI Last Updated: Jul 10, 2022, 10:46 PM IST
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Synopsis
The PPAC is a surcharge to compensate the discoms for variations in the market-driven
fuel costs. It is applied as a surcharge on total energy cost and fixed charge component
of an electricity bill, officials said.

Reuters
The cost of electricity in Delhi has
increased with hike in power purchase
adjustment cost (PPAC), imposed by
discoms on consumers, by 4 per cent
from mid June, official sources said on
Sunday. A power department official
said the hike was made by the power

According to the Ministry of Power directions on

distribution companies (discoms) after
November 9, 2021, every state regulatory approval by the Delhi Electricity
commission (DERC in the case of Delhi) has to
place a mechanism for automatic pass through of Regulatory Commission(DERC) due to
fuel and power procurement cost in tariff for
ensuring the viability of power sector, said a
discom official.
increase in prices of fuel like coal and
gas.

No immediate reaction of DERC was available.

The PPAC is a surcharge to compensate the discoms for variations in the

market-driven fuel costs. It is applied as a surcharge on total energy cost and
fixed charge component of an electricity bill, officials said.
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7/14/22, 12:51 PM PPA: Electricity bills in Delhi go up with 4% rise in PPA cost - The Economic Times

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"The PPAC in Delhi has been increased by 4 per cent from June 11, according to
the approval of the DERC," said an official source.

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According to the Ministry of Power directions on November 9, 2021, every state
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regulatory commission (DERC in the case of Delhi) has to place a mechanism
Isha Ambani Mukesh Ambani Resigns
for automatic pass through of fuel and power procurement cost in tariff for
ensuring the viability of power sector, said a discom official.

More than 25 States/Union Territories have implemented fuel surcharge Most Popular News
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The PPAC is a requirement under the Electricity Act, DERC's own tariff orders stocks temporary?

and Appellate Tribunal for Electricity (APTEL) orders. The central regulatory
commission, CERC allows central PSU gencos like NTPC NSE -0.61 % , NHPC 2. Nothing phone (1) price
leaked ahead of launch;
NSE 1.94 % and trancos, PPAC on a monthly basis. On the other hand, Delhi brand teases photography
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discoms are allowed PPAC on a quarterly basis, he said.

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sponsored green cards rises
The PPAC is levied to off-set the increase in the fuel prices. In the latest
instance, the decision to increase the PPAC is based on the blending of
imported coal, increased gas prices and high prices in power exchanges, which
had reached to almost Rs 20 per unit, before being capped by the CERC to Rs 4. RBI allows payments for
cross-border trade in rupee,
move to benefit trade with
12 per unit, officials said. Russia

Since 2002, the cost of buying power for Delhi discoms has increased by 5. PM to launch SGX Nifty trade
at GIFT
around 300 per cent, a cost on which discoms have no control; whereas the
retail tariff has risen by around 90 per cent in the corresponding period,
claimed the discom official.

The discoms distribution licence levies PPAC of 4.5 per cent without going
through the regulatory proceedings. In case the actual PPAC exceeds 4.5 per
cent, the discoms file application to the DERC for the differential PPAC claim.
After approval from the commission, the differential PPAC is charged in
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