Delhi Power Tariff Likely to Rise from April Amid ₹38,000 Crore Dues to Discoms
Supreme Court-mandated recovery plan may push up electricity bills, with government considering subsidies to ease consumer burden
Electricity tariffs in Delhi are expected to increase from April as the government prepares to clear pending dues exceeding ₹38,000 crore owed to private power distribution companies (discoms), officials confirmed on Sunday.
The move follows directives from the Supreme Court of India, which in August last year ordered that regulatory assets — including carrying costs of ₹27,200 crore — be paid to the city’s three discoms over a period of seven years. These discoms include BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), and Tata Power Delhi Distribution Limited (TPDDL).
Regulatory assets, which represent costs incurred by discoms that are to be recovered later, have surged significantly due to the absence of tariff hikes over the past decade under the Aam Aadmi Party government. According to the Delhi Electricity Regulatory Commission (DERC), the total regulatory assets currently stand at ₹38,552 crore.
Breakdown of dues shows BRPL is owed ₹19,174 crore, BYPL ₹12,333 crore, and TPDDL ₹7,046 crore. These figures reflect approved expenditures incurred by the companies in supplying electricity to consumers across the city.
The rising burden has been further compounded by accumulating interest due to delays in cost recovery. The Supreme Court has also instructed DERC to formulate a comprehensive recovery plan, conduct audits, and account for carrying costs associated with these dues.
Officials indicated that recovery will likely be implemented through an increased regulatory asset surcharge on electricity bills over a seven-year period. However, the Delhi government is considering subsidising the tariff hike to reduce its impact on consumers.
Earlier, Delhi Power Minister Ashish Sood had signalled a potential increase in electricity rates as discoms were authorised to recover approximately ₹27,000 crore.
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