Delhi Power Update: DERC Trims BRPL’s Cost Recovery Claim
The Delhi Electricity Regulatory Commission (DERC) has officially finalized the Power Purchase Cost Adjustment Charge (PPAC) for BSES Rajdhani Power Ltd (BRPL) for the first quarter of FY 2025-26.
The regulator isn't just rubber-stamping utility claims anymore.
The Numbers
Utility Claim: 8.08%
DERC Approved: 6.73%
The Difference: A 135-basis-point reduction in the immediate burden on consumers.
Why the haircut?
In its final order issued on December 17, 2025, the DERC conducted a detailed "prudence check" of power purchase and transmission costs. While BRPL cited rising market costs and proposed alternative methodologies to justify a higher levy, the Commission stuck to the script.
The DERC made it clear that PPAC computation is strictly limited to three pillars under Regulation 134 (2017) and Regulation 30 (2023):
Fixed Charges
Energy Charges
Transmission Charges
Anything falling outside these categories was explicitly tossed out.
What this means for Delhi
For the average consumer, this decision tempers tariff volatility during the winter billing cycle. For the utility, it provides short-term cash flow stability (the rate is approved through February 8, 2026) but signals that the "automatic" nature of cost pass-throughs is being replaced by much tighter regulatory oversight.
The Fine Print
This isn't a final "yes" to the costs. The DERC has reiterated that all underlying expenses will undergo a final prudence check during the annual true-up of FY 2025-26. If the costs aren't found reasonable or compliant, they won’t make the final cut.
The Big Picture: Sector watchers note that this ruling reinforces a conservative shift at the DERC. It’s a signal to all Delhi distribution utilities: Expect your petitions to be scrutinized under a microscope.
Read more at: EnergyLineIndia.com


















