Monday, Jan 30, 2023

DERC hikes power tariff by up to 7 per cent

It was hiked by up to three per cent in February last year and again by five per cent in August last.

Power tariff in the national capital was tonight hiked by up to seven per cent by the Delhi Electricity Regulatory Commission and will come into effect from Saturday.

The regulator hiked the tariff by levying surcharge heeding to the demands of the three private power distribution companies.

According to the DERC order, the hike will be 7 per cent for consumers of BSES Yamuna Power Ltd while BSES Rajdhani customers will have to shell out 4.5 per cent extra on their electricity bills.

The hike for consumers of Tata Power Delhi Distribution Ltd has been fixed at 2.5 per cent.

Subscriber Only Stories
UPSC Key- January 30, 2023: Know about Project 39A, Beating Retreat Cerem...
UPSC Essentials | Key terms of the past week with MCQs
ExplainSpeaking: How to evaluate a Union Budget
Mahesh Vyas writes: Why the job shortage is for real

“We have hiked the tariff to help power distribution companies recover their power purchase cost. The surcharge will be reviewed again in February,” DERC chairperson P D Sudhakar said.

BJP, Congress and AAP have strongly criticised the hike. Delhi BJP President Satish Upadhyay said the party will raise the issue with Union Power Minister Piyush Goyal and Lt Governor Najeeb Jung.

While hiking the power tariff by up to 7.5 per cent for domestic consumers, the DERC in July had withdrawn Power Purchase Adjustment Cost (PPAC) of around 8 per cent till October.


The regulator had introduced PPAC in 2012 to help the private power distribution companies recover additional cost on account of increase in coal and gas prices.

Delhi gets power from a number of gas and coal-based power generation plants.

The private power distribution companies, particularly, BRPL and BYPL, have been demanding significant hike in tariff, citing rise in power purchase cost.


The withdrawal of PPAC in July had resulted in marginal decline of tariff for the consumers, whose monthly consumption does not exceed 400 units.

PPAC is a surcharge given to the discoms to compensate variations in the market-driven fuel costs like additional costs on account of increase in coal and gas prices.

According to DERC figures, the private discoms operating in the city have a revenue gap of a whopping Rs 19,500 crore.

Official figures show that around 80-90 per cent of total revenue of discoms goes into purchasing power from central and state government owned entities through long-term power purchase agreement, at rates determined by the central and state regulators.

The city has seen a series of hike in power tariff in the past two years.


The tariff was hiked by 22 per cent in 2011 followed by five per cent hike in February 2012. The tariff was increased by up to two per cent in May 2012 year and again by 26 per cent for domestic consumers in July 2012.

It was hiked by up to three per cent in February last year and again by five per cent in August last.


The cost of buying power has increased primarily on account of an increase in the input prices of raw material like coal and gas, officials said.

First published on: 13-11-2014 at 22:24 IST
Next Story

Magnus Carlsen still favourite to beat Vishwanathan Anand, claim experts

Latest Comment
Post Comment
Read Comments