Delhi Power Bills Set To Rise As DERC Approves Fuel Surcharge Hike; Who Will Pay More?

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• Increased power purchase costs necessitated this adjustment.

Delhi residents may soon face higher power bills after the Delhi Electricity Regulatory Commission (DERC) approved an increase in the Fuel and Power Purchase Adjustment Surcharge (FPPAS) for power distribution companies.

The move is expected to increase electricity rates by between 1 per cent and 3.30 per cent, particularly for consumers with higher power consumption.

High-Consumption Users Likely To Be Affected

According to officials, consumers using more than 500 units of electricity are likely to see a noticeable increase in their monthly bills.

Commercial, industrial and non-subsidised domestic consumers are expected to be the most affected by the revised surcharge.

However, most consumers using between 0-200 units and 200-400 units of electricity are not expected to face a significant impact at present.

Consumers receiving full or 50 per cent electricity subsidy from the Delhi government will not face any additional burden on their bills.

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DERC Clears Higher Fuel Surcharge

DERC has approved Delhi’s power distribution companies to levy a monthly Power Purchase Adjustment Cost (PPAC) charge of 16-18 per cent for April 2026.

As a result, electricity tariffs for consumers using more than 500 units of power could rise by 1-3.30 per cent.

Officials said the decision was taken in view of the increase in power purchase costs and the broader energy crisis linked to global developments.

Rising Energy Costs Behind Move

The increase comes amid higher expenditure on coal and power procurement.

Officials noted that the removal of the 10 per cent surcharge cap applicable to electricity companies could further impact bills for consumers who are not covered under subsidy schemes.

While subsidised consumers are expected to remain insulated from the increase, those with higher electricity consumption and those outside the subsidy framework may soon experience higher monthly power costs.

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Subsidised Consumers Exempt

Officials clarified that consumers receiving full or 50 per cent subsidy under the Delhi government’s electricity support scheme will not be affected by the revised surcharge.

The decision primarily targets non-subsidised consumers, with the additional charge aimed at helping power distribution companies manage rising fuel and power procurement expenses.

According to officials, the revised FPPAS has been approved in view of the increase in energy costs and the need to address higher expenditure incurred by distribution companies during power purchases.