Delhi residents are likely to see a modest increase in their electricity bills after the Delhi Electricity Regulatory Commission (DERC) on Friday allowed power distribution companies (discoms) to raise a surcharge used to recover higher power procurement costs, with the biggest impact falling on consumers in east and central Delhi served by BSES Yamuna Power Limited (BYPL).“Power Purchase Adjustment Cost is a surcharge approved by DERC to account for variations in power purchase costs incurred by discoms. (AP)Also Read| Delhi govt finalises eligibility criterion for women, transgender e-auto schemeThe increase relates to the Fuel and Power Purchase Adjustment Surcharge (FPPAS), a variable charge that allows discoms to recover sudden increases in the cost of buying electricity. DERC on Wednesday approved higher surcharge limits for April 2026, citing a sharp rise in power purchase costs driven by higher fuel prices and global market uncertainties.For consumers, the change is likely to translate into a modest increase in monthly bills.A household with a sanctioned load of 2 kilowatts (kW) and a monthly consumption of 600 units in a BYPL area may see its electricity bill rise by around ₹170 – from about ₹3,766 to ₹3,936.In areas served by BSES Rajdhani (BRPL), the increase for a similar consumer would be about ₹102, taking the bill from roughly ₹3,850 to ₹3,952.Consumers in areas served by Tata Power Delhi Distribution Limited (TPDDL), which covers much of north Delhi, are unlikely to see any significant change as the approved increase there is marginal.Officials stressed that consumers receiving Delhi government electricity subsidies will not be affected by the move because the subsidy is linked to the number of units consumed rather than the total bill amount.Electricity tariffs approved by DERC are based on projected costs of purchasing power. However, the actual cost of electricity generation can fluctuate because of changes in coal prices, transportation expenses, imported fuel costs and market conditions. The FPPAS mechanism allows discoms to recover these additional costs instead of waiting for a tariff revision.“Power Purchase Adjustment Cost (PPAC) is a surcharge approved by DERC to account for variations in power purchase costs incurred by discoms. These costs are largely influenced by coal and fuel prices. Recently, fuel prices have risen significantly due to increased imports and higher transportation costs,” an official explained.DERC allowed BYPL the steepest increase, raising its permissible surcharge from 11.71% to 17.43%, an increase of 5.72 percentage points. BRPL was allowed to increase the surcharge from 14.51% to 17.94%, while TPDDL’s approved surcharge rose from 15.99% to 16%.The regulator’s latest order further relaxes an earlier ceiling that capped FPPAS recovery at 10% in a billing cycle. Between January and February, DERC had granted special permission allowing the three discoms to exceed that limit. The fresh order permits an even higher recovery for April 2026.Notably, BRPL requested permission to recover an FPPAS of 31.55% for April, while BYPL sought 35.26%. TPDDL sought around 16%. Officials said DERC rejected these demands but agreed that some additional recovery was necessary.The order also introduces a new mechanism that could affect bills in future. If a discom incurs costs that it is not allowed to recover immediately because of a ceiling on the surcharge, the amount may be carried forward and recovered later when permissible limits allow.