Electricity consumers in Delhi may face higher electricity bills for the second consecutive month. The Delhi Electricity Regulatory Commission (DERC) has granted approval to the capital’s power distribution companies (discoms) to levy an additional Fuel and Power Purchase Adjustment Surcharge (FPPAS) of up to 8 percent on customers. Officials stated that following this DERC decision, discoms will be able to add the FPPAS to their consumers’ electricity bills for the second month in a row. This is likely to result in an increase in consumers’ monthly electricity bills.
Previously, the DERC had also approved the levy of an additional FPPAS for the month of April. At that time, an additional FPPAS of 7.94 percent was applied for BSES Rajdhani Power Limited (BRPL) consumers, 7.43 percent for BSES Yamuna Power Limited (BYPL) consumers, and 6 percent for Tata Power Delhi Distribution Limited (TPDDL) consumers.
Companies sought relief for June and July as well
All three power distribution companies (discoms) had sought relief from the Delhi Electricity Regulatory Commission (DERC) for the months of June and July as well. The companies stated that the actual cost of purchasing electricity in May was significantly higher than the existing Base Power Purchase Cost. The discoms argued that additional relief under the Fuel and Power Purchase Adjustment Surcharge (FPPAS) mechanism was necessary to mitigate the financial burden of increased power purchase costs and to ensure an uninterrupted power supply to consumers. On this basis, they requested permission to levy the additional charge for June and July.
What is the limit for FPPAS in a single billing cycle?
According to the regulations of the Delhi Electricity Regulatory Commission (DERC), the maximum recovery of the Fuel and Power Purchase Adjustment Surcharge (FPPAS) in any single billing cycle is capped at 10 percent. The DERC determines the FPPAS rate monthly, calculating it as a percentage of the sum of the consumer’s fixed charges and energy charges. According to an order issued by the DERC on July 10, the FPPAS for May was calculated at 25% for BSES Rajdhani Power Limited (BRPL), 19.91% for BSES Yamuna Power Limited (BYPL), and 12.21% for Tata Power Delhi Distribution Limited (TPDDL).
Additional FPPAS to apply on a monthly basis
The Delhi Electricity Regulatory Commission (DERC) has authorized the levy of an additional Fuel and Power Purchase Adjustment Surcharge (FPPAS) at rates of 7.94% for BSES Rajdhani Power Limited (BRPL), 7.43% for BSES Yamuna Power Limited (BYPL), and 2.21% for Tata Power Delhi Distribution Limited (TPDDL). Per the Commission’s order, the total FPPAS recoverable from consumers will be 17.94% for BRPL, 17.43% for BYPL, and 12.21% for TPDDL. The DERC has also clarified in its order that this arrangement for additional FPPAS will remain in effect on a monthly basis until the Commission issues further orders.
What is FPPAS?
FPPAS (Fuel and Power Purchase Adjustment Surcharge) is an additional charge levied by electricity distribution companies (discoms) on consumers to recover costs arising from fluctuations in electricity generation and procurement expenses. When the cost of fuels used for power generation—such as coal or natural gas—rises, or when distribution companies (DISCOMs) are compelled to purchase electricity from the open market at higher rates to meet demand, a portion of this additional cost is recovered through the FPPAS. This charge is not fixed; instead, it is determined monthly by the Delhi Electricity Regulatory Commission (DERC) based on a review of power purchase costs. It is calculated as a percentage of the sum of the consumer’s fixed charges and energy charges. Consequently, FPPAS rates may fluctuate in line with increases or decreases in power purchase costs.
