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DERC gives nod to raise electricity prices

Consumers in the Capital could see a rise in electricity costs, with the Delhi Electricity Regulatory Commission DERC giving the go-ahead to distribution companies to raise power purchase adjustment charges PPAC PPAC is a surcharge to cover any change in the power purchase costs incurred by discoms approved by the regulator. The cost of a power purchase is influenced by various factors, such as coal and other fuel prices. DERC has allowed BSES Rajdhani Power and BSES Yamuna Power to raise tariffs by 6.39 percentage points and 9.42 percentage points. This means that PPAC's PPAC charges are 27.08% and 31.6 percent of the tariff. Tata Power Delhi Distribution and NDMC received nod to raise charges by 1.49 and 2 percentage points, respectively. PPAC charges are 29.13% and 30.3% of the tariff. In Delhi there is a full subsidy for electricity consumption up to 200 units and 800 units for use between 201 and 400 units.

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8 Comments

Avatar of Katchuka

Katchuka

The decision to increase charges via PPAC may not be transparent, with consumers not fully understanding the reasons behind the rise in costs.

Avatar of KittyKat

KittyKat

The rise in charges is necessary to cover the power purchase costs incurred by discoms, as coal and fuel prices can be unpredictable.

Avatar of Katchuka

Katchuka

The decision by DERC may not have been properly communicated to consumers, leaving them unaware of the increased charges.

Avatar of BuggaBoom

BuggaBoom

The increase in charges may not be justified if the power purchase costs have not significantly risen.

Avatar of Loubianka

Loubianka

The PPAC charges seem to disproportionately affect certain distribution companies.

Avatar of Dmitri07

Dmitri07

There may not be enough competition within the electricity market to allow consumers to switch to lower-cost providers.

Avatar of Shrilanka

Shrilanka

The PPAC charges are regulated by the DERC and are a fair way to distribute the costs amongst consumers.

Avatar of Amatus

Amatus

The increase in charges reflects the true cost of electricity consumption and can lead to more efficient usage of electricity.

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