APTEL Orders Quick Resolution of ₹38,500 Crore Dues by DERC
APTEL orders DERC to liquidate ₹38,500 crore discom dues in 3 weeks
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The Appellate Tribunal for Electricity (APTEL) has mandated the Delhi Electricity Regulatory Commission (DERC) to liquidate over ₹38,500 crore in dues within three weeks. This decision, aimed at addressing regulatory assets accumulated since 2007, could lead to increased power prices in Delhi.
- 01APTEL rejected DERC's request for a three-month extension to clear dues.
- 02DERC must liquidate regulatory assets within three weeks.
- 03Failure to revise tariffs since 2014-15 contributed to the accumulation of dues.
- 04The dues include ₹19,174 crore for BRPL, ₹12,333 crore for BYPL, and ₹7,046 crore for Tata Power.
- 05The Supreme Court has set a timeline for clearing dues by April 2028.
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The Appellate Tribunal for Electricity (APTEL) has ordered the Delhi Electricity Regulatory Commission (DERC) to liquidate ₹38,500 crore in dues within three weeks, rejecting DERC's plea for a three-month extension. This decision targets regulatory assets that have been accumulating since 2007 due to delays in tariff revisions. APTEL criticized DERC for allowing these assets to grow, which could ultimately burden electricity consumers in Delhi. The dues are broken down into ₹19,174 crore owed by BSES Rajdhani Power Limited (BRPL), ₹12,333 crore by BSES Yamuna Power Limited (BYPL), and ₹7,046 crore by Tata Power Delhi Distribution (TPDDL). The Supreme Court previously mandated that all state electricity regulators begin clearing dues by April 2024 and complete the process by April 2028, with the possibility of revising tariffs to recover these amounts. The last tariff revision in Delhi occurred in 2014-15, leading to the current financial predicament.
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Consumers in Delhi may face higher electricity prices as the DERC is compelled to recover accumulated dues through tariff increases.
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