The Delhi Electricity Regulatory Commission (DERC) has permitted the city's three power distribution companies to recover an additional charge called the Power Purchase Adjustment Charge (PPAC) for April 2026. According to reports from NDTV Profit, this marks the first time that Delhi's PPAC levy will be imposed on a monthly basis, as earlier the adjustment was calculated and recovered once every three months. The companies include BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL). The revised surcharge will be implemented in June 2026, with the increased charges reflecting in consumer bills from July 2026 onwards.
The regulator has approved PPAC rates that are lower than the charges sought by the discoms. As reported by NDTV Profit, the approved rates for April 2026 are: BSES Rajdhani Power Limited (BRPL): 17.94%, BSES Yamuna Power Limited (BYPL): 17.43%, and Tata Power Delhi Distribution Limited (TPDDL): 16%. The impact varies significantly across Delhi's power distribution areas. Consumers in BYPL areas (east and central Delhi) are expected to see their bills rise by around 5.7%, while BRPL areas (south and west Delhi) will see electricity bills increase by about 3.4%. TPDDL consumers are unlikely to notice any significant change as the PPAC revision for those areas is marginal, changing only from 15.9% to 16%.
According to Times of India reports, the financial impact varies significantly based on consumption levels. A household consuming 400 units monthly is expected to pay around ₹92 more in BYPL areas and about ₹56 more in BRPL areas. For households consuming 600 units, the increase could be around ₹170 in BYPL areas and ₹102 in BRPL areas. However, consumers receiving Delhi government electricity subsidies for usage of up to 200-500 units will not face any additional financial burden. The subsidy is linked to electricity consumption slabs rather than the final bill amount, meaning the PPAC will not increase the amount payable by these consumers. The additional surcharge could range between 7% and 18%, depending on consumption levels and the applicable discom. High-consumption users using more than 500 units of electricity are likely to see a noticeable increase in their monthly bills, with commercial, industrial and non-subsidised domestic consumers expected to be the most affected.
The latest increase follows a sharp rise in electricity procurement costs in April as soaring temperatures pushed up demand, forcing discoms to buy more expensive power from the market. According to Times of India, power purchase accounts for nearly 80% of a discom's total expenditure in Delhi. The PPAC surcharge allows power distribution companies to recover fluctuations in fuel and power purchase costs, as electricity generation largely depends on coal and natural gas, with any increase in fuel prices directly raising power procurement costs. DERC said the revised PPAC has been approved subject to the submission of supporting documents and certification of power purchase costs. The removal of the 10 per cent surcharge cap applicable to electricity companies could further impact bills for consumers who are not covered under subsidy schemes, with officials noting that the decision was taken in view of the increase in power purchase costs and the broader energy crisis linked to global developments.
