Delhi electricity rates likely to rise from April: Know the reason behind it
Delhi is likely to see a rise in power tariffs from April as the government prepares to clear more than Rs 38,000 crore in dues owed to private discoms. The increase follows regulatory directives and years of delayed cost recovery.
Electricity rates in Delhi are likely to increase from April as the government prepares to clear long-pending dues of more than Rs 38,000 crore owed to private distribution companies. Officials indicated that although a tariff hike appears unavoidable, the administration is considering subsidies to minimise the impact on consumers, news agency PTI reported.
Earlier in August 2023, the Supreme Court had directed that regulatory assets, including carrying costs amounting to Rs 27,200 crore, be paid to the three private discoms - BRPL, BYPL and TPDDL - within seven years. Regulatory assets, which are expenses allowed to be recovered in future tariffs, have grown steeply due to the absence of tariff revisions over the past decade under the Aam Aadmi Party (AAP) government.
In January, the Delhi Electricity Regulatory Commission informed the central agency, the Appellate Tribunal for Electricity, that total regulatory assets in the capital stand at Rs 38,552 crore. According to the filing, BRPL accounts for Rs 19,174 crore, BYPL Rs 12,333 crore and TPDDL Rs 7,046 crore. These amounts represent approved expenditures incurred by discoms to ensure an uninterrupted electricity supply.
Interest build-up and recovery plan
Officials said the overall burden has climbed significantly due to the accumulation of interest over years of delayed recovery. The court has also asked the regulator to prepare a recovery blueprint, factor in carrying costs and conduct a detailed audit explaining the decade-long delay in addressing rising regulatory assets. The recovery is expected to reflect in consumer bills through an increased regulatory asset surcharge spread across seven years.
Past indication of tariff hike
Delhi Power Minister Ashish Sood had earlier stated that discoms were authorised to recover Rs 27,000 crore in accumulated regulatory assets, hinting last year itself that electricity tariffs in the city could rise.
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