The cost of electricity in Delhi has increased with hike in power purchase adjustment cost (PPAC), imposed by discoms on consumers, by 4 per cent from mid June, official sources said on Sunday. A power department official said the hike was made by the power distribution companies (discoms) after approval by the Delhi Electricity Regulatory Commission(DERC) due to increase in prices of fuel like coal and gas. No immediate reaction of DERC was available. The PPAC is a surcharge to compensate the discoms for variations in the market-driven fuel costs. It is applied as a surcharge on total energy cost and fixed charge component of an electricity bill, officials said. "The PPAC in Delhi has been increased by 4 per cent from June 11, according to the approval of the DERC," said an official source. According to the Ministry of Power directions on November 9, 2021, every state regulatory commission (DERC in the case of Delhi) has to place a mechanism for automatic pass through of fuel and
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