No hike in electricity tariffs, assures NDMC

Keshav Chandra, chairperson, and Kuljeet Singh Chahal, vice-chairman, New Delhi Municipal Council (NDMC), announced that there would be no hike in power tariffs for consumers in NDMC areas despite the power purchase adjustment cost (PPAC) order issued by the Delhi Electricity Regulatory Commission (DERC) on December 31, 2024.

The NDMC officials, in a press conference on Friday, assured the public that no additional surcharge would be levied on electricity bills and the current electricity tariff rates would remain unchanged for the time being. There are nearly 70,000 power connections in the NDMC areas. Of this, over 60 per cent are domestic connections.

The council emphasised its commitment to protecting consumers from any financial burden arising from the PPAC order.

The PPAC surcharge is a mechanism designed to compensate distribution companies for variations in the cost of power procurement. However, in the absence of a tariff order from DERC since FY 2021-22, the PPAC petitions have been submitted quarterly, indicating the gap between actual power costs and those stipulated by DERC. These ad hoc PPAC orders are reconciled during the truing up process of a distribution company’s accounts.

Keshav Chandra and Kuljeet Chahal clarified that despite the PPAC order proposing an increase in the cost of power, the NDMC had decided not to implement this increase. The council reassured consumers that it would continue to take all necessary measures to protect their interests.

Additionally, Chahal highlighted that the Government of India had previously urged the NDMC to transition to a 100 per cent renewable energy model for the city. However, despite NDMC’s request to de-allocate gas power, the Government of NCT of Delhi denied the proposal, leaving the NDMC to bear fixed charges amounting to Rs 175 crore per year until the expiration of power purchase agreements (PPAs) in March 2029 and March 2039.