Electricity likely to cost more in Delhi; APTEL orders to start liquidation of discom dues in 3 weeks

New Delhi: Electricity is likely to become costlier in the national capital with the APTEL on Monday directing Delhi's power regulator DERC to commence the process of liquidating a whopping Rs 38,500 crore of dues of discoms within three weeks.

The Appellate Tribunal for Electricity (APTEL) in its order also rejected Delhi Electricity Regulatory Commission (DERC) application for an audit of power discoms by CAG, and instead directed it to complete the exercise within three months by engaging an independent chartered accountant.

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No immediate comment from the Delhi government was available on the development that will cause a huge financial burden on the city residents. However, in the past it had hinted that the Centre's help could be sought to resolve the issue.

Pending dues of discoms have collected over the years in the form regulatory assets (RAs) due to a lack of any power tariff hike in Delhi.

The DERC informed the central agency, APTEL, in January that total regulatory assets in Delhi stand at Rs 38,552 crore. RAs refer to deferred expenses borne by the discoms out of changes in fuel costs, repairs and such other activities, which are realised in future.

RAs of discoms are realised from consumers in the form of a surcharge that is part of their monthly electricity bill.

APTEL in its order said the DERC's request for extension of time till July 2, 2026, for commencement of liquidation of regulatory assets is totally "unreasonable and unacceptable", and rejected it.

"We direct the Commission to commence the process of liquidation of regulatory assets as per the judgement of the Supreme Court, within three weeks from today (Monday) positively," said the order.

APTEL held that there was no legal impediment to begin the process and criticised the delay, noting that it would ultimately burden consumers.

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The tribunal also blocked the move of DERC for an audit of discoms through the Comptroller and Auditor General (CAG) and observed that while the Supreme Court, in its judgment dated August 6, 2025, had directed regulatory commissions to undertake a "strict and intensive audit" of discoms, it did not specify that such audit must be carried out by the CAG.

It also noted that discoms were not given an opportunity to present their case before the audit decision was taken.

The tribunal, however, directed DERC to proceed with the audit by appointing an independent CA within one week from the date of the order and to complete the exercise within three months, in line with the Supreme Court's directions.

According to the DERC filing before the APTEL, 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 are approved expenditures incurred by discoms for supplying electricity.

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