Delhi: Your electricity Bills may increase by up to 6%- Heres why

Delhi Electricity Regulatory Commission (DERC) has allowed a hike in Power Purchase Adjustment Cost (PPAC).

PPAC is a surcharge used to compensate the discoms for changes in the rate of fuel in the market.

This decision will impact the electricity rates and they are expected to rise by 2 per cent to 6 per cent.

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This rate will go up by 6 per cent in the areas under BSES Yamuna. While in BSES Rajdhani area will see an increase in rates by 4 per cent.

At the same time, rates in areas that receive electricity from Tata Power Delhi Distribution Limited (TPDDL) are expected to rise by 2 per cent.

The order related to rates are to be enforced retrospectively from 10 June and they will remain in place till 31 August.

It must be noted that, since a few days ago, the rise in input cost has impacted production.

Apart from that, the shortage of coal and consistent rise in its prices are among the reasons for rate hike by the DERC.