Delhi Regulator Permits DISCOMs to Recover Higher Power Purchase Costs

The relaxation will apply on a month-to-month basis until further orders

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The Delhi Electricity Regulatory Commission (DERC) has allowed distribution companies in the national capital to recover fuel and power purchase adjustment surcharges (FPPAS) above the 10% ceiling for April 2026.

The Commission permitted BSES Rajdhani Power (BRPL) to recover the total FPPAS of 17.94% and BSES Yamuna Power (BYPL) to recover 17.43% for April 2026.

Tata Power Delhi Distribution (TPDDL) has been allowed to recover FPPAS up to 16%, subject to the submission of a statutory auditor’s certificate certifying the quantity and amount of power purchased during April 2026, along with a supporting affidavit for the FPPAS claim.

The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (Second Amendment) Regulations, 2026, provide for a ceiling of 10% on the FPPAS recoverable in a billing cycle. They also disallow distribution companies’ claims for FPPAS under the tariff order dated September 30, 2021, for the financial year 2021-22.

BRPL and BYPL, through representations dated May 18, 2026, and TPDDL, through its representation dated May 21, 2026, sought relaxation in implementing these provisions.

The DISCOMs submitted that the actual power purchase cost for April 2026 had increased significantly compared to the approved base power purchase cost considered in the prevailing tariff order dated September 30, 2021.

The Commission noted that the FPPAS for April 2026 was 31.55% for BRPL and 35.26% for BYPL, substantially higher than the 10% ceiling prescribed under Regulation 134(d). TPDDL claimed that its FPPAS for April 2026 was approximately 16%, exceeding the prescribed ceiling.

DERC said Regulation 172 of the Tariff Regulations empowers it to relax any provision of the regulations for reasons recorded in writing.

The Commission said the order was issued to remove the difficulties faced by DISCOMs in recovering at least a reasonable part of the increase in power purchase costs during the relevant period.

DERC allowed BRPL to recover an additional FPPAS of 7.94%, bringing the total recoverable FPPAS to 17.94% for April

BYPL was allowed to recover an additional 7.43%, taking its total recoverable FPPAS to 17.43%.