Electricity Bill Rules: Good news! Electricity consumers will get half electricity bill by March next year, know how

Delhi Electricity Regulatory Commission (DERC) has reduced the Power Purchase Adjustment Charge (PPAC) of power companies in various areas. This is expected to provide huge relief in electricity bills. The new rates will be effective till March 2025, which will reduce the electricity bill by almost half.

Electricity bill reduce: Delhi Electricity Regulatory Commission (DERC) has reduced the Power Purchase Adjustment Charge (PPAC) levied on electricity bills. BRPL, the power company supplying electricity in South, Central and West Delhi, has now reduced the PPAC charge by 18.19 percent, BYPL, which supplies electricity in Trans Yamuna area, by 13.63 percent and Tata Power (DDL), which supplies electricity in Outer and North Delhi, has reduced the PPAC charge by 20.52 percent. This will reduce the electricity bill by almost half by March.

The reason is the increase in PPAC charges

According to sources in the power supply company in Delhi, in the second quarter, DERC had increased the PPAC charges by 8.75 percent, due to which NDMC, which supplies electricity in New Delhi area, was charging 38.75 percent PPAC charge, Tata Power (DDL) which supplies electricity in Outer and North Delhi, was charging 37.88 percent PPAC cost, BYPL which supplies electricity in Trans Yamuna area was charging 37.75 percent and BRPL which supplies power in Central, South and West Delhi, was charging 35.83 percent PPAC on total consumption. This had led to a huge increase in electricity bills.

The companies supplying electricity in Delhi had again demanded an increase in PPAC from DERC for the third quarter, but this time DERC has reduced the PPAC by assessing the power purchase agreement of all the power companies and the expenditure incurred on it. In the second quarter, the increased rates of PPAC were applicable till 20 December. The third quarter is from 21 December to 20 March 2025. The PPAC rates fixed by DERC for this will reduce the electricity bills by almost half. By reducing the PPAC charge, DERC has now reduced it to 18.19 percent in BRPL area, 13.67 percent in BYPL area and 20.52 percent in Tata Power (DDL) area.

Electricity bill when PPAC charge is less

If the electricity consumption of a consumer living in South or West Delhi is 510 units in a month, then the electricity bill is calculated as follows on the first fixed PPAC. Energy charge is levied at the rate of Rs 3/unit on the first 200 units, Rs 4.50/unit on the next 200 units and Rs 6.50/unit on the unit consumption beyond that. The fixed PPAC charge is levied on every energy charge. For example:

Total PPAC charge as per new PPAC on 510 units only: Rs 800.80

Total Rs 406.50

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