Power tariffs in New Delhi are set to increase by up to 6 per cent from June 15. This is after the Delhi Electricity Regulatory Commission allowed a power purchase adjustment charge to the three distribution utilities – Tata Power Delhi Distribution Ltd, BSES Rajdhani and BSES Yamuna.

Consumers under the Tata Power Delhi Distribution Ltd area will see a 4 per cent hike in tariffs, while BSES Yamuna and BSES Rajdhani consumers will face a 6 per cent increase, officials said.

The power purchase adjustment charge is a surcharge levied to compensate for distribution utilities for recovering additional cost of power procurement due to higher generation costs and it was introduced in 2012.

Last year, the DERC allowed a PPAC charge in November but withdrew it a day later. Last month, the Appellate Tribunal for Electricity directed the DERC to pass an order for giving their claim to the PPAC for the third and fourth quarter of 2014-15. The 2015-16 tariff order by the regulator will be decided in July.

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