The Delhi Electricity Regulatory Commission (DERC) has allowed three major power distribution companies in Delhi to recover additional Fuel and Power Purchase Adjustment Surcharge (FPPAS) for May 2026. The decision comes after the companies reported a sharp rise in the cost of purchasing electricity, which exceeded the recovery limit set under the existing tariff regulations.
Under the Delhi Electricity Regulatory Commission (Fuel and Power Purchase Cost Adjustment) Second Amendment Regulations, 2026, power distribution companies are normally allowed to recover a maximum FPPAS of 10% from consumers in a single billing cycle. However, the actual increase in power purchase costs during May 2026 was significantly higher than this limit.
According to the calculations submitted before the commission, BSES Rajdhani Power Limited (BRPL) recorded a power purchase cost increase of 25.07%, while BSES Yamuna Power Limited (BYPL) reported an increase of 19.91%. Tata Power Delhi Distribution Limited (TPDDL) experienced a comparatively lower increase of 12.21%. Since these figures were well above the permitted recovery ceiling, the utilities approached the commission seeking permission to recover a larger share of the additional expenses.
After examining the petitions, the DERC exercised its authority under Regulation 172, which allows the commission to relax certain regulatory provisions in exceptional circumstances. The commission concluded that the unusually high increase in power purchase costs justified a temporary relaxation of the existing 10% cap.
As per the order issued on July 10, 2026, and signed by commission members Surender Babbar and Ram Naresh Singh, BRPL has been permitted to recover an additional 7.94% surcharge, BYPL an additional 7.43%, and TPDDL an additional 2.21%.
With this approval, the total FPPAS that can now be recovered for May 2026 has increased to 17.94% for BRPL, 17.43% for BYPL, and 12.21% for TPDDL. The commission noted that this arrangement is intended to help the distribution companies manage the financial impact of higher power procurement costs while continuing to maintain electricity supply.
DERC also clarified that the relaxation will take effect immediately from the date of the order and will continue on a month-to-month basis until further directions are issued. The commission further stated that all other provisions of the Delhi Electricity Regulatory Commission Tariff Regulations, 2017, along with the 2026 amendments, will remain unchanged and continue to apply.
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