Delhi Govt Shields Consumers from Global Fuel Cost Spike, Says Power Minister Ashish Sood

New Delhi, June 13: Delhi Power Minister Ashish Sood on Friday said that the Delhi Government has taken measures to protect electricity consumers from the impact of rising global fuel prices, ensuring that subsidized consumers will not face any increase in their power bills despite a sharp rise in power procurement costs.

Addressing concerns over the recent revision in the Power Purchase Adjustment Cost (PPAC), Sood clarified that PPAC is a statutory mechanism provided under the country’s electricity laws and is not a newly introduced charge. The provision allows electricity distribution companies to adjust for fluctuations in fuel and power procurement costs on a monthly basis.

According to the Minister, the ongoing crisis in West Asia and other international developments have led to a significant increase in global fuel prices, resulting in a 31 per cent rise in power procurement costs over the past month.

“Power Purchase Adjustment Cost is not a new arrangement. Existing electricity laws permit power companies to adjust for rising fuel costs used in electricity generation. Due to international factors, including the situation in West Asia, fuel costs have increased substantially,” Sood said.

Despite the sharp increase in generation costs, the Minister noted that the Delhi Electricity Regulatory Commission (DERC) has allowed only a limited increase in PPAC to minimize the burden on consumers.

He stated that while power procurement costs rose by 31 per cent, DERC approved an average PPAC increase of only 2.4 per cent. The PPAC, which had been capped at 14.5 per cent until March 31, now stands at approximately 17.5 to 17.9 per cent following the latest revision.

Sood described the move as evidence of the government’s commitment to protecting consumers from the full impact of rising global energy prices while maintaining the financial sustainability of power distribution companies.

The Minister also reassured residents that consumers receiving electricity subsidies from the Delhi Government will remain fully insulated from the PPAC adjustment.

“All consumers receiving Delhi Government electricity subsidies will face absolutely no impact on their electricity bills due to this regulatory adjustment. There is no reason for subsidized consumers to worry,” he said.

Rejecting what he termed politically motivated misinformation, Sood said the government led by Chief Minister Rekha Gupta remains committed to safeguarding consumer interests.

He added that the latest DERC order includes provisions such as deferred recovery mechanisms for distribution companies while limiting the immediate impact on consumers. According to the Minister, households served by TPDDL are expected to witness virtually no impact, while subsidized consumers will remain completely protected.

Reaffirming the government’s focus on transparency and consumer welfare, Sood said Delhi’s power sector continues to function under strict regulatory oversight to ensure reliable, affordable, and uninterrupted electricity supply for residents across the national capital.

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