Power purchase costs up 31% amid West Asia crisis, Delhi allows only 2.4% electricity tariff hike: Delhi's Power Minister
New Delhi, June 13 -- Delhi Power Minister Ashish Sood on Saturday said that the recent increase in the Power Purchase Adjustment Cost (PPAC) was necessitated by a sharp rise in fuel costs linked to developments in West Asia, while assuring consumers that the government would limit the impact on electricity bills.
Speaking to ANI, Sood said the PPAC mechanism is an established provision under the country's electricity laws and not a new charge.
"The Power Purchase Adjustment Cost (PPAC) is not a new mechanism. The country's electricity laws permit power companies to adjust for the rising costs of the fuel used to generate electricity," he said.
Explaining the reason behind the latest increase, the minister said fuel costs have risen si...
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