Electricity bills in Delhi have gone up since May 1, as power companies have hiked electricity tariffs affecting many households and businesses. The increase in tariffs is evident in the bills that residents are receiving in July.
The hike is applicable in areas served by two BSES companies – BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL).
While Tata Power Delhi Distribution Limited has not increased its rates, BRPL and BYPL have introduced noticeable hikes.
The areas covered by BSES Yamuna Power Limited (BYPL) have seen a tariff hike of 6.15%. This includes parts of East and Central Delhi.
BSES Rajdhani Power Limited (BRPL) has implemented a higher increase of 8.75%. This affects residents in South and West Delhi.
The increase in electricity rates has been made under Power Purchase Adjustment Cost (PPAC). This adjustment is made to cover the costs that power distribution companies incur while purchasing electricity from power generation companies. The higher costs are then passed on to consumers through their electricity bills.
The total Power Purchase Adjustment Cost (PPAC) for Delhi’s power distribution companies from May to July 2024 varies.
NDMC has the highest total PPAC at 38.75%, followed by TPDDL at 37.88%, BYPL at 37.75%, and BRPL at 35.83%. This includes existing PPAC on past dues and additional current PPAC, with NDMC and TPDDL each adding 8.75% to their existing rates, BYPL adding 6.15%, and BRPL adding 8.75%.
This increase in tariffs will be in effect for three months starting from May 1. After this period, the Delhi Electricity Regulatory Commission (DERC) will review the situation and issue further orders based on petitions from the power companies.
Residents in the affected areas are now facing higher electricity bills. For many, this increase comes as a burden, especially during the summer months when electricity consumption is typically higher due to the use of air conditioning and cooling devices.
It is worth noting that Tata Power Delhi Distribution Limited, which serves other parts of Delhi, has not raised its electricity tariffs. Customers in these areas will not see any change in their electricity bills for now.
The recent hike in electricity tariffs by BRPL and BYPL has resulted in higher bills for many residents in Delhi amid an increase in demand for power supply. While this increase is currently set for three months, future decisions by DERC will determine the long-term impact on electricity costs in the city.