Power purchase cost rising, discoms seek hike in tariff

Your electricity bills may soon increase significantly with the power regulator all set to approve the power-purchase cost adjustment (PPAC) for distribution companies for this quarter.

Though the electricity tariff is approved in a year, discoms have to keep on purchasing power from generating companies at different rates and fuel prices also keep on changing throughout the year. Discoms submit the actual price at which they have purchased power every three months and the Delhi Electricity Regulatory Commission (DERC) determines whether it needs to be adjusted in the form of a surcharge.

According to DERC officials, discoms BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL) have sought a 9 per cent increase in the surcharge. Tata Power Delhi Distribution Limited (TPDDL) has asked for a 12 per cent increase.

“We have received their power-purchase cost submission for this quarter. A fixed formula is applied to determine the percentage increase. The quantum is yet to be determined but there will surely be an increase,” said a senior DERC official.The official said while BRPL and BYPL have submitted for a power-purchase cost adjustment for the previous period, the TPDDL submitted it for the current period too.Thepower-purchase cost adjustment will be applicable from May.At present, consumers in TPDDL areas pay 1.5% surcharge while in BRPL and BYPL, they pay 3%. They had been paying this surcharge since February 1.

“The percentage increase on account of PPAC will be applicable as a surcharge on the total fixed and energy charges (excluding arrears, LPSC, E Tax etc.). The bill format will clearly identify the percentage and amount of PPA as separate entities,” explained the official.    Power distribution companies claim that they have to pay power suppliers such as the National Thermal Power Corporation and generation companies of Delhi on a monthly basis and the earlier method of recovery of these expenses used to take them at least two years to get the returns.

“Power distribution companies submit their bills stating the rate at which they have purchased cost. However, DERC will take a final decision after taking all the points into consideration such as increase in fuel cost etc,” added the official.

with thanks : Hindustan Times : LINK