Delhi Power Minister Ashish Sood says the recent PPAC revision is due to rising global fuel costs. He stated the govt ensured minimal impact on consumers and that those receiving electricity subsidies will remain completely unaffected by the adjustment.
Addressing concerns regarding the recent Power Purchase Adjustment Cost (PPAC) revision in the national capital, Delhi Power Minister Ashish Sood on Saturday said the adjustment had become necessary due to an unprecedented rise in global fuel prices triggered by the ongoing West Asia crisis and other international factors. He clarified that the PPAC is a statutory mechanism provided under the country's electricity laws and is not a new arrangement. The provision enables electricity distribution companies to adjust for fluctuations in fuel and power procurement costs monthly, Sood said, according to an official release.
Why the PPAC Revision?
"Power Purchase Adjustment Cost (PPAC) is not a new arrangement. The electricity laws of the country already permit power companies to adjust for the rising cost of fuel used to generate electricity. Due to the situation in West Asia and other prevailing circumstances, fuel costs have risen sharply, leading to a 31 per cent increase in power procurement costs during the past month," Sood said.
'Minimal Burden on Consumers'
The Minister highlighted that despite this substantial increase in generation costs, timely intervention by the Delhi Government ensured that the burden on consumers remained minimal, the release stated. "Even though power procurement costs rose by 31 per cent, the Delhi Electricity Regulatory Commission (DERC) has allowed only an average increase of 2.4 per cent in PPAC. Earlier, the PPAC had been capped at 14.5 per cent till March 31. With the latest revision, it stands at approximately 17.5-17.9 per cent. This demonstrates our commitment to protecting consumers from the full impact of rising global energy prices," he stated.
Sood emphasised that PPAC is a nationally accepted regulatory framework and is routinely implemented across the country under existing electricity laws. He noted that the latest DERC order strikes a careful balance between maintaining the financial viability of power distribution companies and safeguarding consumer interests.
Subsidised Consumers Remain Unaffected
The Minister further reassured residents that consumers receiving electricity subsidies from the Delhi Government will remain completely insulated from the impact of the PPAC adjustment, according to the release. "I want to categorically state that all consumers receiving Delhi Government electricity subsidies will face absolutely no impact on their electricity bills due to this regulatory adjustment. There is no reason for subsidised consumers to worry," he said.
Govt Dismisses 'Politically Motivated Misinformation'
Dismissing politically motivated misinformation, Sood reaffirmed the commitment of the government led by Chief Minister Rekha Gupta, under the guidance of Prime Minister Narendra Modi, towards protecting the interests of Delhi's residents. "Attempts are being made to spread confusion and create unnecessary apprehensions. Our government stands firmly with consumers, particularly those benefiting from power subsidies. We are closely monitoring the situation and will continue to ensure that the burden of rising energy costs does not fall disproportionately on the people of Delhi," he added.
The Minister also pointed out that the DERC's latest order includes provisions such as deferred recovery mechanisms for distribution companies while simultaneously limiting the immediate impact on consumers. He noted that households served by TPDDL will witness virtually no impact, while all subsidised consumers remain fully protected, the release stated.
Reiterating the government's commitment to transparency and consumer welfare, Sood said that Delhi's power sector continues to function under strict regulatory oversight with the objective of ensuring reliable, affordable, and uninterrupted electricity supply for all citizens. (ANI)
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