DERC Allows Additional Surcharge As Delhi Bills Rise

16 Jul 2026 CW Team

Delhi's power regulator has allowed city distribution companies to impose an additional fuel and power purchase adjustment surcharge on consumers for a second month, permitting up to eight per cent in extra levy.

The decision follows requests from distribution companies citing higher power purchase costs and was framed after an assessment of monthly variations in procurement expenses.

Last month the Delhi Electricity Regulation Commission permitted additional FPPAS for April at rates of seven point nine four per cent for BRPL, seven point four three per cent for BYPL and six per cent for TPDDL. Three distribution companies sought relaxation in June and July on the ground that actual power purchase cost for May had risen substantially compared with the base power purchase cost and the regulator considered those submissions before issuing the order.

Under DERC regulations there is a cap of 10 per cent on the FPPAS recoverable in a billing cycle and the surcharge is determined monthly. The charge is calculated as a percentage of the total of the fixed charge and the energy charge of a consumer. An order issued on July 10 stated that the FPPAS for May was calculated at 25 per cent for BRPL, 19.91 per cent for BYPL and 12.21 per cent for TPDDL.

The regulator allowed the distribution companies to recover, in addition to the capped 10 per cent, the additional FPPAS for May to address difficulties in recovering at least the reasonable part of the increase in power purchase costs. The additional FPPAS permitted was seven point nine four per cent for BRPL, seven point four three per cent for BYPL and two point two one per cent for TPDDL, making the total FPPAS recoverable 17.94 per cent, 17.43 per cent and 12.21 per cent respectively for May 2026. The relaxation will apply month to month until further order by the commission.

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