DERC Blocks Steep Power Charge Hike Requested by NDMC

The Delhi Electricity Regulatory Commission (DERC) has denied permission to the New Delhi Municipal Council (NDMC) to impose a significant Power Purchase Cost Adjustment Charge (PPAC) for the upcoming quarter. The NDMC had sought to add a 50.29% charge to consumer bills for July through September 2024, citing increased power purchase costs.

DERC highlighted that over 80% of the power acquired by NDMC this quarter comes from short-term and medium-term sources, which are less costly compared to long-term sources. The proposed charge would thus lead to a substantial and unjustified rise in consumer tariffs.

While the NDMC currently applies a self-recovered PPAC of 8.75%, the DERC ruled against the additional hike. However, the commission allowed NDMC to levy suo moto PPAC within existing limits, with any surplus or deficit adjusted after a prudential review of power procurement expenses.

(With inputs from agencies.)