Power distribution companies have welcomed the approval of power purchase cost adjustment (PPAC) by the Delhi Electricity Regulatory Commission (DERC), saying the decision would make it easier to arrange power.

DERC on Thursday evening approved PPAC of 1.5 per cent for Tata Power consumers and 3 per cent for consumers of BSES Yamuna and BSES Rajdhani.

DERC said in a statement that the percentage hike on account of PPA would be applicable as a surcharge on both total fixed and energy charges, and that the percentage and amount of PPA would clearly be mentioned as separate entities in the bill format

Welcoming the decision, Tata Power Delhi Distribution Ltd said, "It becomes easier to arrange power through these measures and we are happy that it has been increased slightly."

On the other hand consumers have criticized the decision as they will now have to pay more for the same amount of energy consumption. For instance, BSES customers who consume 400 units per month will see their bill rising from Rs 1,840 to Rs 1,895.20; wile consumers in the TPDDL areas will see their bills going up from Rs 1,840 to Rs 1,867.60.

Earlier this month Tata Power Delhi Distribution Ltd, BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd had submitted account statements on power purchased in the October to December quarter and sought 2.80 per cent, 9.1 per cent and 7.44 per cent rise in electricity charges, respectively.