After a decade, Delhi may see electricity price hike; here’s why

Electricity may soon become dearer in the national capital as discoms look to recover a substantial Rs 27,000 crore in regulatory assets left by the previous AAP government, Delhi Minister Ashish Sood said Monday. This debt, owed to power distribution companies (discoms), has been accumulated through the Delhi Electricity Regulatory Commission (DERC).

The BJP blamed the AAP government for the lack of tariff hikes that led to regulatory assets accumulating over the past decade. Regulatory assets are costs that can be recovered from consumers through future tariff revisions. 

According to Delhi Power Minister Ashish Sood, "The previous (AAP) government has left a debt of Rs 27,000 crore of regulatory assets with the discoms through DERC (Delhi Electricity Regulatory Commission). To recover this, the companies are authorised to increase the electricity rates. During the tenure of the previous government, on the orders of the High Court, DERC was ordered to bring tariff orders." He was responding to a question by AAP MLA Imran Hussain in the Delhi Assembly.

Discoms are authorised to increase rates to manage the accumulated debt. 

The BJP government is closely monitoring the situation with the DERC that has commenced the tariff revision process and is in the midst of consultations with stakeholders. A public hearing on the tariff petitions filed by power companies, including major players like BRPL and TPDDL, is scheduled for March 27.  

The upcoming public hearing is part of the routine procedure for adjusting tariffs, which includes garnering stakeholder input and assessing the financial needs of power companies. Discoms, under the current situation, are authorised to recoup their regulatory asset debt through tariff hikes. "The power discoms are authorised to recover this amount from people through hike in power tariff," Sood confirmed.  

Meanwhile, former Delhi chief minister Atishi criticised the BJP-led Central government for not adhering to its financial promises to women, expressing hope that the ongoing budget session will address this issue along with others affecting Delhi. The Delhi Assembly's budget session, kicking off on March 24, will handle various pressing issues, including electricity prices.