Delhi: NDMC Guarantees No Increase in Power Bills for 70,000 Consumers
Click to start listening
New Delhi, Jan 3 (NationPress) In a significant relief for more than 70,000 power users in the New Delhi Municipal Council (NDMC) region, Vice Chairman Kuljeet Singh Chahal declared that the municipal authority will not impose any increase in electricity tariffs for its consumers.
If necessary, the NDMC will absorb the cost increase resulting from the electricity regulator’s elevated tariff order, he explained.
The current power tariff rates for both domestic and commercial consumers will remain unchanged despite the recent power purchase adjustment charge (PPAC) directive issued by the Delhi Electricity Regulatory Commission on December 31, 2024.
Chahal stated that the latest PPAC directive, which suggests a rise in power costs for consumers, will not be enforced by NDMC, firmly ruling out any hikes in electricity charges for consumers in the foreseeable future.
During a media briefing, Chairperson Keshav Chandra affirmed that NDMC is committed to maintaining current electricity rates for its consumers.
Approximately 70,000 power connections exist in NDMC territories, with over 60 percent being residential households.
Council Members Anil Valmiki, Sarita Tomar, and Dinesh Pratap Singh were also present at the press conference.
Chahal noted that DERC has not released a tariff order since 2021-22. It’s essential to highlight that DERC issued a tariff order for the fiscal year 2021-22 in September 2021, where the average PPAC for NDMC was Rs 7.26 per unit.
In the absence of a tariff order, PPAC petitions have been filed by discoms quarterly, which reflect the variance between the actual power purchasing costs and the costs set by DERC through its order, Chahal commented.
He mentioned that PPAC orders are temporary and are adjusted during the reconciliation of accounts of a discom.
At the press conference, he explained that the PPAC is a surcharge established by the electricity regulatory commission to offset fluctuations in the purchasing costs incurred by distribution companies.
However, NDMC has chosen not to raise electricity tariff rates for its consumers despite the PPAC orders issued by DERC.
Chahal further stated that the Secretary (Power), GOI, indicated in a meeting on July 15 that the Central government envisions NDMC as a smart city utilizing 100 percent renewable energy.
