Delhi The Electricity Regulatory Commission (DERC) has given permission to power distribution companies to impose ‘additional’ fuel and power purchase adjustment surcharge of up to 8 percent on customers for the second month. Due to this, the monthly electricity bill may increase further. Officials gave this information on Monday. Last month, power regulator DERC had given approval to power distribution companies (DISCOMs) to levy additional fuel and power purchase adjustment surcharge (FPPAS) for April.
Electricity distribution companies had demanded relief from DERC
These rates were 7.94 percent for BSES Rajdhani, 7.43 percent for BSES Yamuna and 6 percent for Tata Power Delhi Distribution Limited. These three power distribution companies had also sought relief from DERC for June and July. He said that the actual cost of power purchase for the month of May has increased significantly compared to the current basic power purchase cost. As per DERC rules, there is a limit of 10 per cent on FPPAS to be charged in a bill cycle. Additionally, FPPAS decides DERC every month.
How is FPPAS calculated?
FPPAS is calculated as a percentage of the sum total of the customer’s fixed charges and energy charges. DERC, in an order issued on July 10, had said the FPPAS for May has been calculated at 25 per cent for BSES Rajdhani, 19.91 per cent for BSES Yamuna and 12.21 per cent for Tata Power Delhi Distribution Limited. According to the order, DERC has given permission to distribution companies to charge additional amount for May over and above the fixed limit FPPAS of 10 per cent. This will help them overcome the difficulties they face in recovering ‘at least their fair share’ of the increase in the cost of purchasing power.
Which company got approval to charge how much additional FPPS?
Additional FPPS has been sanctioned at the rate of 7.94 per cent for BSES Rajdhani, 7.43 per cent for BSES Yamuna and 2.21 per cent for Tata Power. As per the DERC order, the total FPPAS rate that can be recovered for May, 2026 is 17.94 per cent in case of BSES Rajdhani, 17.43 per cent for BSES Yamuna and 12.21 per cent in case of Tata Power. It has also been said in the order that this relaxation will remain applicable on monthly basis till the next order of the Commission. Let us tell you that Chhattisgarh State Electricity Regulatory Commission had approved an average increase of 6.23 percent in electricity rates last month, which came into effect from July 1.
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SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
