Delhi Electricity Regulatory Commission Faces Pressure to Clear ₹38,000 Crore Dues Amid Tariff Hike Concerns
Delhi power commission DERC directed to clear dues worth over ₹38,000 crore; electricity tariffs may increase
Hindustan Times
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The Appellate Tribunal for Electricity has ordered the Delhi Electricity Regulatory Commission to clear over ₹38,000 crore in regulatory asset dues within three weeks, raising concerns that electricity tariffs may increase. The tribunal criticized the commission for delays and mandated an independent audit of power distribution companies.
- 01APTEL directed DERC to clear dues of over ₹38,000 crore within three weeks.
- 02Electricity tariffs in Delhi may rise to recover these costs.
- 03The tribunal rejected DERC's request for an extension and criticized its delays.
- 04An independent audit of power distribution companies is mandated instead of a CAG audit.
- 05Current tariffs have not been revised since 2014-15, leading to a significant accumulation of dues.
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The Appellate Tribunal for Electricity (APTEL) has mandated the Delhi Electricity Regulatory Commission (DERC) to initiate the clearance of regulatory asset dues exceeding ₹38,000 crore (approximately $4.6 billion USD) within three weeks. This decision comes amid concerns that electricity tariffs may increase to cover these costs. The tribunal criticized the DERC for its repeated delays in addressing these dues, which have accumulated since tariffs were last revised in 2014-15. APTEL rejected the DERC's plea for an extension and emphasized the need for an independent audit of the power distribution companies, dismissing the commission's proposal for a Comptroller and Auditor General (CAG) audit. The tribunal's order highlights the urgency of addressing the mounting regulatory assets, which are deferred costs that arise when electricity tariffs do not reflect rising supply expenses. The DERC is required to develop a phased recovery plan to clear these dues by March 31, 2031. The Delhi government has expressed its commitment to protecting consumers from the burden of increased tariffs, citing inefficiencies and corruption as contributing factors to the current situation.
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If tariffs rise, residents may face higher electricity bills, impacting their monthly expenses.
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