New Delhi, Jan 3 In a big relief for over 70,000 power consumers in the New Delhi Municipal Council (NDMC) area, Vice Chairman Kuljeet Singh Chahal announced that the civic agency would not hike power tariffs for any consumer.
If needed, the NDMC will absorb the hike resulting from the electricity regulator’s higher tariff order, he said.
The electricity tariff rate for both domestic and commercial consumers will not be hiked despite the new power purchase adjustment charge (PPAC) order by the Delhi Electricity Regulatory Commission on December 31, 2024.
The current PPAC order, which proposes an increase in the cost of power for consumers, will not be implemented by NDMC, said Chahal, ruling out any increase in electricity charges for consumers in the near future.
Addressing the media, Chairperson Keshav Chandra said NDMC would take all steps to retain the current electricity charges for its consumers.
There are nearly 70,000 power connections in NDMC areas, of which over 60 per cent are domestic households.
Council Members Anil Valmiki, Sarita Tomar and Dinesh Pratap Singh were also at the press conference.
Chahal said DERC had not issued a tariff order since 2021-22. It is pertinent to mention that DERC issued a tariff order for FY 2021-22 in September 2021, in which the average PPAC for NDMC was Rs 7.26 per unit.
In the absence of a tariff order, PPAC petitions were submitted by discom quarterly, indicating the difference in the actual cost of purchasing power and the cost of power mandated by the DERC through its order, Chahal said.
PPAC orders are ad-hoc in nature, and they are reconciled during the truing up of accounts of a discom, he said.
At the press conference, he said that the PPAC is a surcharge provided by the electricity regulatory commission to compensate for variations in the power purchase costs incurred by distribution companies.
But NDMC has decided not to increase the electricity tariff rate for its consumers despite PPAC orders by DERC.
Chahal said that Secretary (Power), GOI, in a meeting held on July 15, mentioned that the Central government desires NDMC to be a smart city using 100 per cent renewable energy.
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