Electricity rates in Delhi are likely to increase from April as the government prepares to disburse pending dues of over Rs 38,000 crore to the city’s three power discoms, officials, as per PTI, said on Sunday (March 22). The government is, however, planning to subsidise the hike in power tariff to cushion the impact on consumers.
The Supreme Court in August last year directed that regulatory assets, including carrying costs of Rs 27,200 crore, be paid to Delhi’s three private discoms—BRPL, BYPL, and TPDDL—over a period of seven years. Regulatory assets are costs that are expected to be recovered in the future. These have risen sharply due to a lack of any power tariff hike in the past decade under the Aam Aadmi Party rule.
Related News |
How Much Are the Pending Dues and Regulatory Assets
Delhi Electricity Regulatory Commission (DERC), the city’s power regulator, informed the Appellate Tribunal for Electricity (APTEL) in January that total regulatory assets in Delhi stand at Rs 38,552 crore. According to DERC, the outstanding amount includes Rs 19,174 crore for BRPL, Rs 12,333 crore for BYPL and Rs 7,046 crore for TPDDL. The amounts represent approved expenditures incurred by the discoms for supplying electricity.
Related News |
Officials said the original regulatory asset amounts have increased due to piling interest because of the delay in recovery. The Supreme Court had directed DERC to prepare a recovery plan, account for carrying costs, and conduct a detailed audit explaining the prolonged delay in cost recovery.
How the Recovery Will Affect Your Electricity Bill
The recovery is expected to be made through an increased regulatory asset surcharge in electricity bills over the next seven years. Delhi Power Minister Ashish Sood had said in March last year, “The discoms were authorised to recover Rs 27,000 crore accumulated as regulatory assets,” hinting that electricity rates may rise in the city.
