Dissent Over Proposal To Hike Power Charges

Consumers have to pay for errors by regulatory commission. These charges will only increase in the coming months. BS VOHRA, E Delhi RWA chief

- Paras Singh

NEW DELHI: A steep hike in the power purchase adjustment cost (PPAC) component of electricity bills in the Capital—approved by the Delhi Electricity Regulatory Commission (DERC)—has drawn sharp criticism from opposition parties and residents' associations, who have called it an "unjustified burden" on consumers. The increase is expected to push electricity bills up by 7-10% for the May-June period, officials said on Sunday.

PPAC is a variable surcharge to offset fluctuations in the cost of electricity that distribution companies (discoms) purchase from power generators. Its rate depends on coal prices and region-specific supply dynamics, and is calculated as a percentage of the fixed and energy (unit-based) charges on the bill.