Delhi News: The Delhi Electricity Regulatory Commission (DERC) has been directed by the Appellate Tribunal for Electricity (APTEL) to start the liquidation of regulatory asset dues of more than Rs. 38000 crore. DERC has received three weeks to complete the entire process as there was no legal hurdle to start the process. Would this increase electricity tariffs for Delhiites this summer?
Delhi News-What’s New?
DERC submitted a plea in which it sought time till July 1 this year to start the process. However, the tribunal rejected the plea and said the delay would only burden consumers ultimately.
DON'T MISS
Moreover, the tribunal set aside the DERC’s move to conduct an audit of power distribution companies via the Comptroller and Auditor General (CAG). The tribunal went on to direct the DERC to appoint an independent chartered accountant within a period of 7 days. It also asked that a comprehensive and stringent audit of the discoms must be completed within a period of 3 months, in line with the earlier directions of the Honourable Supreme Court.
In its ruling, it was observed by APTEL that the DERC has been finding different reasons to deliberately delay the liquidation of regulatory assets that has increased the amount of regulatory assets day by day. The order said the conduct of DERC appears to be malafide and requires to be deprecated.
Would This Means Increased Electricity Tariffs For Delhiites?
Regulatory Assets could be described as deferred costs for distribution companies that occur when electricity tariffs are not revised in accordance with growing supply expenses. Since 2014-15, electricity tariffs have not been revised in Delhi. Over time, these costs have significantly accumulated and the state could no longer handle them, meaning the burden would fall on the consumers.
The total regulatory assets to be recovered stand at Rs. 38,552 crore as per a DERC affidavit submitted to APTEL in January 2026. This includes Rs. 7,046 crore for Tata Power Delhi Distribution Limited (TPDDL), Rs. 12,333 crore for BSES Yamuna Power Limited (BYPL) and Rs. 19,174 crore for BSES Rajdhani Power Limited (BRPL).
