Electricity bills to get costlier in Delhi; DERC allows additional fuel and power surcharge

Delhi residents are set to pay higher electricity bills for the second consecutive month after the Delhi Electricity Regulatory Commission (DERC) allowed power distribution companies (discoms) to levy an additional fuel and power purchase adjustment surcharge (FPPAS) of up to 8 per cent.

The regulator's latest order comes after discoms sought relief, citing a sharp increase in power procurement costs during May 2026.

Additional Surcharge Approved

According to a DERC order issued on July 10, the regulator has permitted discoms to recover an additional FPPAS over and above the existing cap of 10 per cent on a billing cycle.

The additional surcharge has been approved at 7.94 per cent for BSES Rajdhani Power Ltd (BRPL), 7.43 per cent for BSES Yamuna Power Ltd (BYPL), and 2.21 per cent for Tata Power Delhi Distribution Ltd (TPDDL).

As a result, the total FPPAS recoverable for May 2026 rises to 17.94 per cent for BRPL, 17.43 per cent for BYPL and 12.21 per cent for TPDDL, according to the order.

Why Bills Are Rising

The three discoms had approached the regulator in June and July, arguing that their actual power purchase cost for May had risen significantly compared with the base power purchase cost.

The DERC noted that while its regulations cap recoverable FPPAS at 10 per cent in a billing cycle, the additional surcharge was being allowed to help utilities recover "at least the reasonable part of the increase" in power purchase costs.

The commission calculated the FPPAS for May at 25 per cent for BRPL, 19.91 per cent for BYPL, and 12.21 per cent for TPDDL, substantially higher than the normal recoverable limit.

Second Consecutive Month Of Relief

The latest approval follows a similar relaxation granted last month for April, when DERC allowed an additional FPPAS of 7.94 per cent for BRPL, 7.43 per cent for BYPL and 6 per cent for TPDDL.

Under DERC regulations, the FPPAS is determined every month and is calculated as a percentage of the combined fixed charge and energy charge in a consumer's electricity bill.

(With inputs from PTI)