Delhi's power regulator, the Delhi Electricity Regulatory Commission (DERC), has for the second consecutive month allowed electricity distribution companies (discoms) to levy an additional Fuel and Power Purchase Adjustment Surcharge (FPPAS) of up to 8% on consumers' electricity bills.
Last month, DERC approved an additional FPPAS for April of 7.94% for BSES Rajdhani Power Ltd. (BRPL), 7.43% for BSES Yamuna Power Ltd. (BYPL) and 6% for Tata Power Delhi Distribution Ltd. (TPDDL).
For May, the regulator has retained the additional surcharge for BRPL and BYPL at 7.94% and 7.43%, respectively, while reducing TPDDL's additional levy to 2.21%.
Discoms levy the FPPAS to recover fluctuations in power procurement costs arising from higher fuel prices, increased electricity demand and other factors.
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Total FPPAS Crosses 17% For Two Discoms
According to a DERC order dated July 10, the total recoverable FPPAS for May stands at 17.94% for BRPL, 17.43% for BYPL and 12.21% for TPDDL.
The three discoms approached DERC in June and July, seeking regulatory relief after claiming that their actual power purchase costs for May had risen significantly above the base costs factored into existing tariffs.
Under DERC regulations, the FPPAS recoverable in any billing cycle is ordinarily capped at 10% of a consumer's fixed and energy charges, with the surcharge reviewed every month.
However, the regulator permitted the discoms to recover an additional FPPAS beyond the 10% ceiling for May, saying the relaxation would help them recover "at least the reasonable part of the increase" in power purchase costs.
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The additional FPPAS approved for May is 7.94% for BRPL, 7.43% for BYPL and 2.21% for TPDDL, taking the total recoverable surcharge to 17.94%, 17.43% and 12.21%, respectively.
DERC said the relaxation will continue to be considered on a month-to-month basis until further orders.
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