Delhi likely to see higher electricity tariff due to 4% hike in PPAC charges; Know details
Delhi residents will soon have to spend more for their electricity usage due to a 4% increase in the Power Purchase Adjustment Charge (PPAC).
- India News
- 2 min read
Delhi residents will soon have to spend more for their electricity usage due to a 4% increase in the Power Purchase Adjustment Charge (PPAC). As per the DISCOM representatives, the hike has been levied to balance the increase in fuel prices. Notably, the power department notified that the hike was made by the power distribution companies after approval by the Delhi Electricity Regulatory Commission (DERC).
BJP MLA and LoP in Delhi Assembly, Ramvir Singh Bidhuri, while expressing his concerns over the increase in electricity prices, demanded that the hike be immediately withdrawn. Attacking the Aam Aadmi Party, Bidhuri said, "The Kejriwal government is increasing electricity rates from the back door in the name of PPAC."
Bhiduri calimed that the Chief Minister Arvind Kejriwal-led government had imposed conditions on the scheme of subsidy of electricity, but on the other hand, has increased the rates of electricity in the name of Power Purchase Adjustment Cost. He claimed that since 2002, the cost of buying power for Delhi DISCOM increased by around 300% and DISCOM had no control over this; the retail tariff had risen by around 90% in the same period.
It is pertinent to note here that the domestic and commercial rates in Delhi are the highest in India. The citizens of the national capital have to pay around Rs. 8 per unit while commercial consumers have to pay a whopping Rs. 14.
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What is PPAC?
Power Purchase Adjustment Charge is an additional charge given to production companies by DISCOMS to compensate for variations in the market-driven fuel costs caused by an increase in coal and gas prices. The Power Cost Adjustment on an electricity bill statement is computed by multiplying the amount charged or credited by the number of kilowatt-hours used. For example, if the amount charged is .03540, and 1000 kWh was used during the billing period, the Power Cost Adjustment would be a charge of Rs 2,810.82.
The Central Electricity Regulatory Commission allows the central public service power generation companies like the National Thermal Power Corporation (NTPC), National Hydro-Electric Power Corporation (NHPC), and transmission companies to review the PPAC on a monthly basis.