Delhi power tariff hike likely after APTEL rejects DERC plea: Report

Delhi residents may have to deal with higher electricity bills in the coming months, with the Appellate Tribunal for Electricity (APTEL) rejecting the Delhi Electricity Regulatory Commission’s (DERC) plea to extend the timeline for clearing dues worth around Rs 30,000 crore.

Dues timeline dispute and regulatory push

According to an India Today report, the dues are related to pending bills payable to Delhi’s power distribution companies as part of a larger liquidation plan seeking to clear old liabilities in the power sector.

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The development comes after the DERC moved the APTEL to extend the deadline, stating that extending the timeline for repayment of dues could lighten the burden on consumers. But with the plea getting rejected, the Delhi government may now have to proceed under the existing timeline.

The issue traces back to directions issued by the Supreme Court of India in August 2025, when it asked state electricity regulators to begin clearing accumulated dues from April 2024 and complete the exercise by April 2028.

Tariff flexibility and mounting liabilities

The court had also made it clear that regulators were free to deploy all available options to settle these liabilities, including revising electricity tariffs where necessary.

The situation carries added weight in Delhi, where power tariffs have been kept low in recent years even as unpaid dues continued to mount within the system.

Impact on consumers

The capital’s model also stands apart from several other states, as its power distribution companies are privately operated. In states such as Tamil Nadu, governments have signalled a willingness to absorb part of the financial strain rather than transferring it directly to consumers.

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For consumers, both households and businesses, the implication remains that, in the absence of an alternative funding mechanism, electricity costs could face upward pressure in the near term.

Govt assurances and possible surcharge route

Earlier, Delhi power minister Ashish Sood had said the government was exploring ways to shield residents from any immediate increase in power bills, even as the Delhi Electricity Regulatory Commission continues to work on a framework to address regulatory asset dues estimated at over Rs 30,000 crore, in line with the Supreme Court’s directive.

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“The Delhi government will not allow the burden of increased power tariffs to fall on customers,” Sood said.

According to a Hindustan Times report, quoting sources, these regulatory assets, essentially outstanding payments owed to distribution companies, could be recovered through a surcharge on consumers, which may in turn be balanced through government subsidies.

Legacy costs and audit plans

Regulatory assets represent deferred costs incurred by distribution companies when tariff revisions do not keep pace with rising supply expenses. Over time, these costs accumulate and are typically passed on to consumers later, often with interest. In Delhi, tariffs have not been revised since 2014-15, resulting in a substantial build-up of such dues.

“This is a legacy issue created during the tenure of the previous Aam Aadmi Party (AAP) government in Delhi. How did the discoms continue to function for so many years if they were running into losses and accumulating such a massive amount of dues?” Sood asked.

He added that the government intends to carry out an audit through the Comptroller and Auditor General of India to assess the financial position of the distribution companies.