DERC has given permission to increase the fuel surcharge. Consumers have to pay 6% to 7.94% higher electricity bills.
Delhi residents may soon pay 6% higher electricity bills: Electricity prices may increased in Delhi. Delhi Electricity Regulatory Commission(DERC) has given permission to increase the fuel surcharge. This has resulted in growing dissatisfaction among Delhi residents.
Earlier, tensions in the Middle East Crisis led to a spike in the cost of gas, petrol-diesel, along with coal. Now it is impacting electricity users. The power distribution companies had requested the DERC to increase the fuel and power purchase adjustment surcharge (FPPAS), which has been approved. As a result, consumers have to pay 6% to 7.94% higher electricity bills. At present, this increase has been made for one month. This increase will not affect subsidized consumers. Consumers consuming up to 200 units of electricity per month get a 100 percent subsidy, and those consuming 201 to 400 units get 50 percent subsidy. FPPAS depends on fuel prices.
The limit for charging FPPAS i.e. Fuel and Power Purchase Adjustment Surcharge for power companies was fixed at 10%. Permission has been given to increase it to 16-17 percent. However, this increase will not have any effect on the power consumption of 500 units.
According to a letter written by the Chamber of Trade and Industry (CTI) against the increase in electricity,‘the hike in electricity rates will put an additional burden on shopkeepers and factory owners in Delhi. Electricity rates for commercial and industries in Delhi will be 15-20% higher than neighboring states of Haryana and Uttar Pradesh. Factories may shift from Delhi to Haryana and Uttar Pradesh.’
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