The Delhi Electricity Regulatory Commission (DERC) has permitted Delhi's power distribution companies to recover an additional fuel and power purchase adjustment surcharge of up to 8 per cent for May 2026. According to reports from Business Standard, this decision aims to help discoms recover at least a reasonable portion of increased power purchase costs. The commission issued this order dated July 10 to address the difficulties faced by distribution companies in recovering costs. Despite this regulatory approval, the latest PPAC notifications indicate that consumers will not face any fresh increase in surcharge this month.
As reported by Business Standard, the relief varies across the three major Delhi discoms. BSES Rajdhani Power Limited (BRPL) is permitted to recover an additional 7.94 per cent FPPAS, while BSES Yamuna Power Limited (BYPL) can recover 7.43 per cent. Tata Power Delhi Distribution Limited (TPDDL) receives the lowest additional allowance at 2.21 per cent. This results in total FPPAS recovery limits of 17.94 per cent, 17.43 per cent, and 12.21 per cent respectively for each company. According to the latest PPAC rates notified by the discoms, BRPL has retained its PPAC at 17.94 per cent, BYPL has kept it unchanged at 17.43 per cent, while TPDDL has reduced its PPAC to 12.21 per cent from 15.99 per cent in June, providing additional relief to its consumers.
According to Business Standard, the existing regulations provide a 10 per cent ceiling on the FPPAS recoverable in a billing cycle. The FPPAS is calculated as a percentage of the total of fixed charge and energy charge for consumers, with DERC determining monthly rates. The commission noted that the actual power purchase costs for May significantly increased compared to the approved base power purchase cost in prevailing tariff orders. In its July 10 order, the DERC calculated the FPPAS for May at 25 per cent for BRPL, 19.91 per cent for BYPL and 12.21 per cent for TPDDL. The three discoms approached DERC in June and July, seeking regulatory relief after claiming that their actual power purchase costs for May had risen significantly above the base costs factored into existing tariffs.
As reported by Business Standard, this relaxation may increase electricity bills for consumers. However, the latest PPAC notifications indicate that consumers will not face any fresh increase in surcharge this month. The relief will come into effect from the date of order issuance and will be applicable on a month-to-month basis until further orders from DERC. The commission had previously allowed these discoms to impose additional FPPAS for April following similar requests from the companies. Despite the regulatory approval, the utilities have decided not to increase PPAC rates for July, offering relief to consumers amid concerns over rising power demand and higher electricity procurement costs during the summer season. DERC said the relaxation will continue to be considered on a month-to-month basis until further orders.
