Delhi Power Rates Likely To Go Up From April — Here’s Why And Will Govt Offer Relief?

Power tariffs in the national capital are likely to see an uptick from April, as the Delhi government prepares to clear pending dues exceeding Rs 38,000 crore to the city’s three power distribution companies.

The move follows a Supreme Court directive issued in August last year, which mandated the payment of regulatory assets, including carrying costs of Rs 27,200 crore, to the three private discoms: BRPL, BYPL and TPDDL, over a period of seven years.

However, the government is considering a subsidy mechanism to offset the impact of the proposed hike on consumers.

Regulatory Assets Pile Up

Regulatory assets, essentially costs incurred by discoms that are to be recovered later,  have ballooned significantly over the past decade, largely due to the absence of any tariff revision during the Aam Aadmi Party’s tenure.

According to a January submission by the Delhi Electricity Regulatory Commission (DERC) to the Appellate Tribunal for Electricity (APTEL), the total regulatory assets in Delhi currently stand at Rs 38,552 crore.

The breakup includes Rs 19,174 crore owed to BRPL, Rs 12,333 crore to BYPL and Rs 7,046 crore to TPDDL. These figures represent approved expenditures made by the discoms in supplying electricity to consumers.

Recovery Plan And Likely Surcharge

Officials noted that the dues have swelled further due to accumulating interest caused by delays in cost recovery.

The Supreme Court has also directed DERC to formulate a detailed recovery plan, factoring in carrying costs and conducting a comprehensive audit to explain the prolonged delay.

The outstanding amount is expected to be recovered through an increased regulatory asset surcharge in electricity bills, spread over a seven-year period.

Earlier, Delhi Power Minister Ashish Sood had indicated that discoms would be allowed to recover around Rs 27,000 crore in regulatory assets, signalling a possible rise in power tariffs in the near future.

(With inputs from PTI)

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