CTI Warns Delhi CM Rekha Gupta As Rising Power Costs Spark Fears Of Industry Exodus

Electricity consumers in Delhi are likely to see higher monthly bills from June, with residents in BSES-served areas expected to pay 2.5 to 3.5 per cent more on their electricity bills. The increase comes after a revision in the Power Purchase Adjustment Charge (PPAC), a surcharge that allows power distribution companies to recover additional costs incurred while purchasing electricity. The hike comes at a time when households are already grappling with rising expenses, while businesses are facing increasing operational costs. With summer power consumption remaining high, the additional burden is expected to be felt across residential and commercial consumers alike.

Why Are Electricity Bills Going Up?

The increase is linked to a rise in power procurement costs borne by electricity distribution companies. Under regulations approved by the Delhi Electricity Regulatory Commission (DERC), power discoms can recover a portion of these extra expenses through PPAC, which is added to consumers’ bills.

Officials say factors such as higher fuel prices, increased power purchase costs and rising transmission expenses have contributed to the revision. As a result, consumers are now being asked to bear part of the additional cost.

CTI Chairman Writes To Delhi CM

Chamber of Trade and Industry (CTI) Chairman Brijesh Goyal has written to Delhi Chief Minister Rekha Gupta, expressing concern over the increase in electricity costs and its impact on businesses. He warned that traders could face a substantial rise in operating expenses, noting that shop owners in major commercial hubs such as Karol Bagh may end up paying Rs 4,000 to Rs 5,000 more in monthly electricity charges than businesses located in neighbouring areas of Uttar Pradesh and Gurugram.

BSES Consumers To Pay More

The revised PPAC will impact consumers served by BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL). According to the latest revision, residents in BSES-served areas are expected to pay 2.5 to 3.5 per cent more on their electricity bills, depending on the distribution zone and consumption pattern.

Since PPAC is charged separately from the regular electricity tariff, consumers may notice an increase in their final bill even if their electricity usage remains unchanged. For households already running air conditioners, coolers and other appliances extensively during the peak summer season, the impact could be more noticeable.

Understanding PPAC

Power Purchase Adjustment Charge is a regulatory mechanism that helps electricity distribution companies recover costs when the price of procuring power rises beyond the level considered while fixing tariffs.

Because fuel costs and electricity procurement expenses fluctuate throughout the year, regulators permit discoms to levy PPAC periodically instead of revising base tariffs every time costs change.

Consumers And Businesses Raise Concerns

The latest increase has sparked concern among residents, traders and industrial groups. Many fear that rising electricity costs could further strain household budgets and increase operating expenses for businesses.

Industry bodies have also voiced concerns that higher power costs could make Delhi less competitive compared to neighbouring states such as Haryana and Uttar Pradesh, where industrial electricity tariffs are often lower.

More Changes Could Follow

The latest hike comes amid ongoing discussions around electricity tariffs in the national capital. With power procurement costs continuing to fluctuate, further revisions cannot be ruled out in the future. For now, consumers covered by BRPL and BYPL should be prepared for slightly higher electricity bills from the June billing cycle as the revised PPAC comes into effect.

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