Will Delhiites Lose Free Electricity? Answers to Every Question After Price Hikes

In a significant development affecting Delhi residents, electricity prices are set to increase starting from May. This adjustment comes as distribution companies in Delhi revise their Power Purchase Agreement Costs (PPAC), citing changes in procurement costs. As a result, consumers can expect their electricity bills to rise by 6% to 8% starting from the bills issued in July.

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Will Delhiites Lose Free Electricity? Answers to Every Question After Price Hikes

In a significant development affecting Delhi residents, electricity prices are set to increase starting from May. This adjustment comes as distribution companies in Delhi revise their Power Purchase Agreement Costs (PPAC), citing changes in procurement costs. As a result, consumers can expect their electricity bills to rise by 6% to 8% starting from the bills issued in July.
Will Delhiites Lose Free Electricity? Answers to Every Question After Price Hikes

Impact on Free Electricity Scheme

One of the key concerns among residents is whether Delhi's free electricity scheme, which provided free electricity up to 200 units, will be discontinued. Despite the revision in PPAC, officials have clarified that there will be no impact on this scheme. Eligible consumers will continue to receive the benefit of free electricity up to 200 units, as before.

Revised Rates by Distribution Companies

BRPL (BSES Rajdhani Power Limited), responsible for the highest electricity supply in Delhi, has increased its PPAC charge by 8.75%. Similarly, BYPL (BSES Yamuna Power Limited) has raised its PPAC charge by 6.15% in its area. Tata Power has implemented a substantial increase of 37.88% in total PPAC charges, including an additional 8.75% hike.
Will Delhiites Lose Free Electricity? Answers to Every Question After Price Hikes

Previous Increases and Current Scenario

Last year, in July 2023, electricity companies had increased PPAC charges by 10%, effective until March 2024. The current revision will be applicable until July, with no further changes announced at this time. Tata Power has clarified that their current PPAC charges remain unchanged from previous levels.

Response from Energy Ministry

Delhi's Energy Minister, Atishi Marlena, addressed the issue stating, "Electricity bills have not been increased. Energy distribution companies have the authority to temporarily increase PPAC charges by up to 10% during peak demand periods such as summers."

This development highlights the ongoing adjustments in Delhi's electricity pricing structure, aiming to manage rising procurement costs amid consumer concerns. Stay informed for further updates on electricity tariffs and consumer benefits in Delhi.