New Delhi
There is significant news for the residents of Delhi. Electricity tariffs are likely to be hiked starting in April. It is being reported that this move stems from the Delhi government’s preparations to settle outstanding dues exceeding ₹38,000 crore owed to three electricity distribution companies (Discoms).
According to an agency report, the government also plans to provide subsidies to offset the impact of the tariff hike, thereby minimizing the financial burden on consumers. In August of last year, the Supreme Court issued a directive to the Delhi government, mandating that it clear the regulatory assets—including a ‘carrying cost’ (interest) of ₹27,200 crore—owed to the three private Discoms (BRPL, BYPL, and TPDDL) within a period of seven years.
Regulatory assets represent costs incurred by the utilities that are expected to be recovered in the future. These assets have accumulated rapidly over the past decade of the Aam Aadmi Party’s administration, during which electricity tariffs remained unchanged. In January, the Delhi Electricity Regulatory Commission (DERC) informed the central appellate body—the Appellate Tribunal for Electricity (APTEL)—that the total value of regulatory assets in Delhi stands at ₹38,552 crore.
**Breakdown of Dues by Discom**
According to DERC filings, the outstanding dues comprise ₹19,174 crore for BRPL, ₹12,333 crore for BYPL, and ₹7,046 crore for TPDDL. These figures represent the approved expenses incurred by the Discoms for the supply of electricity. The original value of these regulatory assets has escalated due to the accumulation of interest resulting from delays in their recovery.
The Court had also directed the DERC to formulate a recovery plan, maintain a detailed account of the carrying costs (interest), and conduct a comprehensive audit to explain the prolonged delays encountered in recovering these costs. It is anticipated that this recovery will be affected over a seven-year period by levying a ‘Regulatory Asset Surcharge’ on electricity bills. Delhi’s Power Minister, Ashish Sood, stated in March of last year that Discoms have been authorized to recover Rs 27,000 crore accumulated as regulatory assets, signaling that electricity tariffs in the city could rise.
