DERC denies NDMC permission to levy power purchase cost adjustment charges for Jul-Sep

New Delhi, Jul 5 (PTI) National capital power regulator DERC has denied permission to the New Delhi Municipal Council to levy power purchase cost adjustment charges (PPAC) for the July-September 2024 period.

The civic body, in its petition before the Delhi Electricity Regulatory Commission (DERC), had sought approval to impose a PPAC of 50.29 per cent on consumer bills for the three months.

The PPAC is levied as a percentage of the base tariff that includes the fixed cost and energy charges (units consumed) by the consumers.

The DERC, in its order on Thursday, noted that more than 80 per cent of the total power purchased by the NDMC in the current quarter is from short-term and medium-term sources, the cost of which is much less than the cost of power from long-term sources.

The NDMC supplies power to consumers in Lutyens' Delhi, having major institutions and installations including the Parliament House and various ministries of the central government.

The DERC said in its order that since the NDMC will be charging PPAC on the total power purchase cost -- long-term, short-term term and medium-term power purchases -- the additional PPAC as claimed by it will be a substantial increase in the consumer tariff for the current quarter.

It also pointed out that the NDMC is already recovering suo-moto, the PPAC of 8.75 per cent on the total quantum of the power purchase during the current quarter, and therefore, its prayer for additional PPAC can not be considered.

"Hence, the prayer of the petitioner seeking permission to levy the PPAC claim of 50.29 per cent on the bills of all consumers for the period of three months cannot be allowed at this stage," the DERC said in its order.

However, it allowed the NDMC to levy suo moto PPAC within permissible limits, saying any surplus or deficit will be allowed with carrying cost, subject to a prudence check of power purchase and transmission bills, in the true-up of the financial year concerned. PTI VIT RHL