Is Electricity Going To Be Costlier For Consumers In NDMC Area? NDMC Clears Air

In a big relief for consumers in New Delhi Municipal Council area, The New Delhi Municipal Corporation has announced that electricity tariffs for consumers in its jurisdiction will remain unchanged. A day after several reports suggested that electricity will be costlier for consumers in the NDMC covered areas, the civic body announced that there would be no hike in electricity bill.

The Chairperson of NDMC, Keshav Chandra, and Vice Chairman, Shri Kuljeet Singh Chahal have announced on Friday that the electricity bill of the consumers would not be hiked due to the DERC PPAC order dated 31.12.2024.

The Civic Body has assured that it would take all steps to retain the current electricity charges for the NDMC area consumers. There are nearly 70,000 power connections in NDMC areas, of which over 60% amongst them are domestic connections. Delhi Electricity Regulatory Commission(DERC) has not issued a tariff order since 2021-22.

The NDMC while clarifying further stated that, “It is pertinent to mention that DERC issued a tariff order for FY 2021-22 in September 2021, in which the average Power Purchase Cost for NDMC was Rs.7.26 per unit. In the absence of a tariff order, PPAC petitions are submitted quarterly, indicating the difference in the actual cost of purchasing Power and the cost of Power mandated by the DERC through its order. PPAC orders are ad-hoc in nature, and they are reconciled during the truing up of accounts of a DISCOM.”

It was further informed that PPAC is a surcharge provided by the electricity regulatory commission to compensate for variations in the power purchase costs incurred by the distribution companies. But NDMC has decided not to increase the electricity tariff rate for its consumers despite PPAC orders by DERC.

Chairperson of NDMC, Keshav Chandra, and Vice Chairman, Kuljeet Singh Chahal, informed that the PPAC order dated December 31 2024, which has caused consternation among consumers. The current PPAC order, which proposes to increase the cost of Power for consumers, will not be implemented by NDMC. There will be no increase in the Power tariff in the NDMC area in the near future. The Council assured that it will take care of its consumers.

Further Kuljeet Singh Chahal informed that Secretary (Power), GOI in a meeting held on 15.07.2017, mentioned that Hon’ble Ministers of Power, GOI desires NDMC to be a smart city using 100% renewable Energy.

Accordingly, The NDMC chairperson further stated that the Delhi Government is requested to surrender the Gas Power. On the request of NDMC,  Secretary (Power), GNCTD denied to de-allocate this Power therefore, NDMC is bound to bear the fixed charges in the tune of Rs 175Cr/Annum irrespective of Power is procure or not till the Expiry of the PPAs i.e March 2029 & March 2039 for PPCL-I & PPCL-III, Bawana respectively.

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