The Delhi Electricity Regulatory Commission (DERC) has allowed electricity distribution companies in the national capital to levy an additional Fuel and Power Purchase Adjustment Surcharge (FPPAS) for the second consecutive month, increasing power bills for consumers. The latest order permits discoms to recover a higher surcharge for May 2026 beyond the standard regulatory limit.
For May 2026, DERC approved an additional FPPAS of 7.94% for BSES Rajdhani Power Limited (BRPL), 7.43% for BSES Yamuna Power Limited (BYPL) and 2.21% for Tata Power Delhi Distribution Limited (TPDDL). With the existing 10% FPPAS cap, the total recoverable surcharge rises to 17.94% for BRPL, 17.43% for BYPL and 12.21% for TPDDL.
According to the order, the distribution companies sought permission to recover additional costs after reporting a sharp rise in power purchase expenses during May. DERC exercised its powers under Regulation 172 of the Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2017, to relax the recovery provisions.
The commission’s calculations showed that the actual FPPAS for May stood at 25% for BRPL, 19.91% for BYPL and 12.21% for TPDDL, exceeding the normal regulatory recovery cap of 10%. The order allows the additional recovery over and above the capped amount.
The relaxation will take effect from the date of the order and will remain applicable on a month-to-month basis until further directions from the commission. DERC also clarified that all other provisions of the Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2017, and the Second Amendment Regulations, 2026, will continue to apply.
The latest approval follows a similar decision last month, when DERC permitted additional FPPAS recovery for April at 7.94% for BRPL, 7.43% for BYPL and 6% for TPDDL. Under DERC regulations, the base FPPAS recoverable in each billing cycle is capped at 10%, with the surcharge reviewed and recalculated every month.
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