Delhi Power Bills to Rise 7-10% Amid Peak Summer Heat, Spark Backlash

The electricity bills of power consumers in Delhi will be hiked by 7-10% in the May-June period due to revision of PPAC charged by the discoms, officials said on May 11. The power purchase adjustment cost (PPAC) refers to rise in fuel (coal, gas) costs incurred by the generation companies which is recovered by discoms from the consumers.

It is calculated as percentage of fixed charge and energy charge (units consumed) components of the electricity bill.

The Delhi Electricity Regulatory Comission (DERC) in its separate orders earlier this month allowed the three discoms to recover the PPAC of third quarter of 2024-25 in the May-June 2024 period.

The PPAC allowed are 7.25% for BRPL, 8.11% for BYPL and 10.47% for TPDDL.

Residents are particularly concerned given extreme summer temperatures, with the India Meteorological Department (IMD) predicting an approaching heatwave in New Delhi.

According to TOI, Temperatures are expected to hit 43.2 degrees Celsius on May 13, followed by 44.4 degrees Celsius on May 14. The heat is expected to intensify further on May 15 touching 45 degrees Celsius, while the weekend of May 17-18 will maintain similar temperatures at 45.5 degrees Celsius and 45 degrees Celsius.

During such intense heat, the reliance on air conditioners and fans for getting comfort will undoubtedly increase power consumption, eventually escalating the electricity bills due to the price hike.

Extreme heat should not burn a hole in the pockets of households that are already struggling to survive by investing most of their savings in getting respite from the scorching weather.

Opposition and Residents Backlash

The hike in power purchase adjustment cost (PPAC) component of electricity bills in the national capital has drawn sharp criticism from opposition parties and residents’ associations who termed this move an “unjustified burden” on consumers already struggling under inflation, according to HT.  

The United Residents of Delhi (URD), an umbrella body of residents welfare associations in the city, slammed the move as “arbitrary”, reported ET.

“The process under which PPAC charges have been imposed on the people of DERC is legally wrong,” said a statement from URD General Secretary Saurabh Gandhi, according to ET.

Political Criticism and Public Dismay

The decision to hike electricity rates has also sparked political criticism.

BS Vohra, President of East Delhi RWAs Joint Action Front, told The New Indian Express, “The PPAC charge was proposed before elections too, but then the current government, then in opposition, had criticised it. Now, no one remembers their promises of affordable power.”

Given the ongoing inflation and the burden already placed on the placed on the common man, the hike in power in power bills is seen as another challenge that could strain Delhi residents during the scorching summer.

 (With inputs from PTI.)