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Domestic consumers with a monthly usage of over 200 units of electricity will have to pay more as the Delhi government has decided to impose a hike upto 8% in the Power Purchase Ad justment Cost (PPAC), Power Minister Atishi said on Monday.

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The Delhi government is looking into the option of removing the subsidy on electricity bills for certain categories of users. This move may pinch the pocket of Delhiites a bit more if implemented. According to a report by the Hindi daily Hindustan, the subsidy option may be removed for consumers who are having electricity connections with a load of more than three kilowatts.

Officials say that if this system is implemented, only 10-15 percent of electricity consumers will be affected. A large section will continue to have the option of getting electricity subsidies. At present electricity subsidy is available in Delhi only on demand. The Delhi government has made this arrangement from October 1, 2022.

So far more than 40.28 lakh consumers have registered for electricity subsidy. The date of when this application process will start for the next financial year 2023-24 is not fixed. The Energy Department will take a decision on this soon.

The big point: Delhi Electricity Regulatory Commission (DERC) has allowed power distribution companies (discoms) to hike their tariffs. According to power department officials, Delhi residents who do not get the subsidy for electricity will now have to pay around 8 percent more.

The details: The Delhi government has permitted BSES Yamuna and Rajdhani power to raise their tariffs by 9.42 percent and 6.39 percent respectively, while the New Delhi Municipal Council can hike its rates by 2 percent. Consumers who use up to 200 units of electricity and avail subsidy, however, will continue to get zero bills.

Power consumers in Delhi with monthly usage of over 200 units will have to pay more after an 8 per cent hike in the power purchase adjustment cost (PPAC), prompting Minister Atishi to allege that electricity is getting costlier in the city due to the Centre's "mismanagement".

Atishi, the power minister in the city government, told reporters on Monday that the hike will not impact consumers whose electricity consumption is 200 units or below. There will be a 8 per cent hike in PPAC surcharge in power bills of those consumers who do not get subsidy, she said.

Noting that discoms are allowed to increase or lower the PPAC for three-month periods, Atishi said, "The prices of electricity have been increased because, due to the Centre's mismanagement, there is an artificial shortage of coal in the country for the first time in the last 70 years, shooting its prices (up)."

The Delhi chief minister Arvind Kejriwal announced on Thursday that residents do not have to pay for electricity if the consumption does not exceed 200 units in a month. Moreover, consumption of 201-400 units would also attract nearly 50% subsidy.

In India, where the coal-fired power plants generate more than 70% of the electricity, minimising energy consumption is among the primary goals to reduce greenhouse gas emissions and mitigate climate change. While the share of renewable energy sources has been gradually rising in the country and especially in Delhi, the overall contribution of renewables remains less than 20%.

Delhi residents will not get subsidised electricity bills from Friday and the inflated bills will come on Monday. The Aam Aadmi Party government has stopped the subsidisation policy because it has decided to continue the subsidy for the next year. This will impact 46 lakh families living in the national capital, Delhi Power Minister Atishi said at a press conference on Friday.

She added that the state government cannot release the subsidised bills as the file is still with the Delhi Lieutenant Governor. The Delhi minister said the file was sent to the L-G a few days back but any response is awaited.

The AAP government provides free electricity to consumers with 200 units of monthly consumption. Those having 201 units to 400 units of monthly consumption get a 50 per cent subsidy capped at Rs 850.

"Those in Delhi who consume up to 200 units of electricity do not need to pay their electricity bills. They will get a zero electricity bill. Consumers of 201-400 units of electricity will receive approximately 50 per cent subsidy," Kejriwal said.

"People used to pay Rs 622 for 200 units of electricity till yesterday, now it's free. For 250 units they used to pay Rs 800, now they'll pay Rs 252. For 300 units, they used to pay Rs 971, now they'll pay Rs 526. For 400 units, they used to pay Rs 1320, now they'll pay Rs 1075," he added.

As winter sets in, zero bills have been delivered to the houses of those who consumed less than 200 units in November. In the months ahead, Delhi Chief Minister Arvind Kejriwal claims 70 per cent of households will have a reason to cheer his innovative measure.

But there is a downside. Subsidised power is one of the reasons cited for the growing demand for electricity. This year, power demand in July touched an all-time high of 7,409 megawatt. In 2018 the demand high was 7,016 and 6,526 MW in 2017. In July 2016, it peaked at 6,261 MW, while June 2015 saw peak demand at 5,846 MW.

Jai Prakash and Mithilesh, who have called this area their home for decades, first say the subsidy has not helped them. Mithilesh starts speaking to us from the balcony of her second floor home, making her way down the stairs later after neighbours heckle her in jest over her high electricity bills.

How do others, not being able to avail the subsidy get positively affected? Well, there is the Delhi Electricity Regulatory Commission (DERC) which has kept the energy charges same for all categories, this year, except for those who consume more than 1,200 units per month. A household whose electricity consumption crosses 1,200 units a month will have to pay 25 paise extra per unit and will be charged Rs 8 per unit.

So, while residents, take for example from Sangam Vihar, are happy with the situation of electricity, they cannot ignore the state of their sanitation and water supply, which has a smaller allocation.

Presently, if we only speak in terms of electricity, in the localities we visited, inhabited with largely working-class persons, this scheme has been of benefit. Political parties, and especially the AAP in Delhi, has gone for schemes which they say are aimed for the poor and lower income groups, marking themselves as a socialist outfit.

Electricity bills of consumers across all segments (domestic, industrial and commercial) in Delhi are set to increase by 1.49 percent to 9.42 percent as the state power regulator has approved a revision in a surcharge called power purchase adjustment cost (PPAC).

As per orders issued by the Delhi Electricity Regulatory Commission (DERC) and reviewed by Moneycontrol, the power bills of consumers of BSES Rajdhani Power Limited (BRPL) will increase by 6.39 percent. BRPL supplies power to at least 2.9 million customers - the highest of all the four distribution companies (discoms) in the national Capital.

Consumers of BSES Yamuna Power Limited (BYPL) will have to pay 9.42 percent more towards their electricity bills. This is the highest increase approved by the DERC of all the four discoms. BYPL supplies power to 1.9 million consumers.

The PPAC surcharge has already come into effect from this month and will reflect in the upcoming electricity bills of consumers in Delhi. It will be valid till March 2024, after which another PPAC revision is likely.

Delhi's minister for power Atishi said consumers who get free electricity up to 200 units will have no impact from the hike in surcharge. However, anyone consuming more than 200 units will have to pay more for their power bills.

The PPAC is a surcharge levied on consumers to compensate the distribution companies (discoms) for variations in the market-driven input costs (additional costs on account of increase in coal, freight and transmission prices and short-term power purchases through exchanges). It is levied on every electricity bill, and, in Delhi, this surcharge is supposed to be revised on a quarterly basis, in accordance with the orders by the Union ministry of power and the Appellate Tribunal for Electricity (APTEL). In fact, power purchase cost accounts for about 80 percent of the total cost incurred by distribution companies.

To be sure, PPAC is already levied on every power bill in Delhi. But from this month, power bills will go up because the DERC has approved increasing the PPAC for every discom. Instead of 22.18 percent, BYPL will levy a PPAC surcharge on every bill of 31.6 percent. For BRPL, it will now be 27.08 percent instead of 20.69 percent. Tata Power-DDL will be able to levy a PPAC surcharge of 29.13 percent instead of 27.64 percent. NDMC will impose 30 percent, instead of 28 percent on power bills.

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The People of Delhi NCR must know that they can now apply for subsidised power facility to continue discounted electricity bills. As per the media reports, Delhi Chief Minister Arvind Kejriwal said, consumers, can apply via both online and offline modes to opt for electricity subsidies. 006ab0faaa