As Delhi continues to wait for the arrival of the monsoon and an end to the scorching summer heat, there is some bad news for the residents of the national capital. The utility bills are set to go up after the(DERC) on Friday allowed discoms to recover higher Fuel and Power Purchase Adjustment (FPPA) surcharge from consumers due to the rising electricity purchase costs amid the energy crisis triggered by geopolitical tensions.
Increase in electricity purchase costs
DERC has permitted the city’s three power distribution companies, BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL) to recover FPPA for April 2026.
FPPAS is applied as a percentage of total energy and fixed costs and is dependent on fuel prices. Recently, there has been a significant increase in due to higher imports and transport costs.
In May, BRPL, BYPL and TPDDL had sought relaxation on the recovery of FPPAS, which is capped at 10 per cent from the DERC. The discoms had urged the DERC to increase the FPPAS recovery limit for April.
According to the , the actual power purchase cost in April increased significantly as compared to the approved base power purchase cost considered in the prevailing tariff order of September 30, 2021.
According to the DERC order, the FPPAS for April stood at 31.5 per cent in the case of BRPL, 35.26 per cent for BYPL, and 16 per cent in the case of TPDDL.
How much will each discom charge?
The Commission allowed a relaxation in the 10 per cent FPPAS recovery limit to “remove the difficulties” faced by discoms in recovering “a reasonable part” of the increase in the power purchase cost.
According to PTI, the DERC has permitted BRPL and BYPL to recover an additional 7.94 per cent and 7.43 per cent FPPAS, respectively, for April. The TPDDL was allowed to recover the entire 16 per cent FPPAS.
Revised charges on electricity bills for April
Following the DERC order, the total FPPAS permitted to be recovered has increased to 17.94 per cent in the case of BRPL and 17.43 per cent for BYPL for the month of April.
The regulator clarified that the relaxation will be applicable on a month-on-month basis till further order.
Till March 2026, the FPPA surcharge was imposed on a quarterly basis. From the April billing cycle, it will now be recovered on a monthly basis, and this is the first order to that effect.
According to officials, in future months, if the calculated FPPAS is below the existing limit, the unrecovered amount from earlier months can be added and recovered gradually, subject to the overall capping provisions.
Who will be affected by the price hike?
The move will impact the consumers not covered by subsidy schemes. However, those getting subsidies (full or 50 per cent) will not be affected. According to Delhi’s scheme, households consuming up to 200 units a month can avail a full subsidy, wherein the effective electricity bill is zero. For households consuming 201 and 400 units a month, there is a 50 per cent subsidy, which is capped at ₹800. Beyond this, the subsidy is not applicable, and customers are billed at full rates.
- The DERC has approved an increase in the FPPA surcharge, driving up electricity costs for many households in Delhi.
- Non-subsidized consumers will feel the brunt of this change, while those under subsidy schemes remain unaffected.
- This adjustment marks a shift from quarterly to monthly billing for the FPPA, impacting consumer budgeting.