As summer temperatures climb, so does the demand for electrical supplies. Residents’ electrical expenses will also increase as the temperature rises. According to sources, due to revisions in the Power Purchase Adjustment Cost (PPAC) paid by the city’s power distribution firms, or Discoms, rates are expected to rise by 7–10% in May and June.

Rising fuel prices, especially for coal and gas used to generate power, made the modification to Power Purchase Adjustment Cost (PPAC) necessary. According to PTI, these changes in fuel prices raise customer expenditures, which distribution firms (discoms) recoup as a proportion of fixed and energy rates.

The Delhi Electricity Regulatory Commission (DERC) this month issued separate orders to the capital’s three main discoms, approving different rates to recover PPAC for the third quarter of 2024–25: 7.25% for BSES Rajdhani Power Limited (BRPL), 8.11% for BSES Yamuna Power Limited (BYPL), and 10.47% for Tata Power Delhi Distribution Limited (TPDDL).

The PPAC hike has been criticized, even though discoms have not officially addressed it. General Secretary Saurabh Gandhi accused the United Residents of Delhi (URD), which represents city RWAs, of legal errors and referred to the raise as arbitrary. He argued that the fuel surcharge and, thus, the PPAC should be consistent, pointing out discrepancies in the allowed percentages between discoms and claiming that there was not enough time for complaints during a virtual public hearing.

Discoms defend the PPAC raise as a clear, regulator-validated legislative mechanism for the prompt pass-through of power purchase prices, according to sources cited by PTI.

Discoms assert that without it, they would have liquidity issues that may make it more difficult for them to make on-time payments to electricity production firms.