DERC Allows Higher FPPAS Recovery For Delhi Discoms Amid Rising Power Purchase Costs

The Delhi Electricity Regulatory Commission (DERC) has allowed power distribution companies (DISCOMs) in Delhi to recover higher Fuel and Power Purchase Adjustment Surcharge (FPPAS) for June 2026, citing a sharp increase in actual power purchase costs. The decision was issued through an order dated August 10, 2026.

Under Regulation 134(d) of the DERC Tariff (Second Amendment) Regulations, 2026, FPPAS recovery in a billing cycle is normally capped at 10%. Regulation 134(k) also restricts DISCOMs from making claims based on the tariff order issued on September 30, 2021.

However, three major Delhi DISCOMs approached the Commission in July 2026 seeking relaxation, stating that the existing cap would create a significant financial burden because of higher power procurement costs.

BSES Rajdhani Power Limited (BRPL) reported an FPPAS requirement of 31.64% for June 2026, while BSES Yamuna Power Limited (BYPL) sought 24.02%. Tata Power Delhi Distribution Limited (TPDDL) reported a requirement of 23.71%.

After examining the submissions, DERC exercised its powers under Regulation 172 of the Tariff Regulations. The provision enables the Commission to relax regulatory requirements where necessary to address operational difficulties or exceptional circumstances.

Accordingly, DERC permitted additional FPPAS recovery beyond the standard 10% ceiling. BRPL has been allowed an additional 7.94%, taking its total recoverable FPPAS to 17.94%. BYPL has been permitted an additional 7.43%, resulting in a total recoverable FPPAS of 17.43%. TPDDL has received an additional 8.50%, taking its total recoverable FPPAS to 18.50%.

The Commission clarified that the additional recovery will remain applicable for one month from August 10, 2026, the date of the order. The relaxation is therefore temporary and specifically intended to provide relief against the financial impact of higher power purchase costs.

DERC also stated that all other provisions of the applicable Delhi Electricity Regulatory Commission Tariff Regulations will continue to remain in force. The order was signed by DERC Members Surender Babbar and Ram Naresh Singh.

The decision provides limited financial relief to Delhi’s DISCOMs while retaining the existing regulatory framework and the 10% FPPAS ceiling as the normal benchmark.