Electricity likely to cost more in Delhi

Electricity bills in Delhi are set to rise after the Appellate Tribunal for Electricity (APTEL) directed the city’s power regulator to begin recovering nearly Rs 38,552 crore in accumulated regulatory assets, a move that will likely push tariffs higher over the next seven years.

The order has once again brought attention to long-pending dues in the power sector, with consumers expected to bear the cost through phased bill increases.

APTEL Orders Immediate Action on Rs 38,552 Crore Dues
The tribunal has instructed the Delhi Electricity Regulatory Commission (DERC) to begin the liquidation process within three weeks, rejecting its request for additional time.

DERC had sought a delay to first conduct a Comptroller and Auditor General (CAG)-style audit of discom accounts before starting recovery. However, APTEL refused the extension.

As reported by TOI, the tribunal observed: “DERC has been delaying the liquidation for one reason or the other thereby permitting increase in the amount... day by day, which will place additional burden on the end consumers.”

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It also described the request for more time as “totally unreasonable and unacceptable.”

Power Bills Set to Rise Through Regulatory Asset Surcharge
Officials said DERC is expected to introduce a regulatory asset surcharge on electricity bills, allowing recovery of dues over a seven-year period.This means residents and businesses in Delhi could face steady increases in monthly electricity bills, as the accumulated costs are gradually passed on to consumers.What Are Regulatory Assets in Electricity Bills?
Regulatory assets arise when power distribution companies fail to recover their full costs through tariffs.

These typically include:

Power purchase costsTransmission expensesDistribution losses
When governments avoid tariff hikes, the gap is recorded as regulatory assets and recovered later, often with interest.

In Delhi, electricity tariffs have reportedly remained unchanged since 2014–15, while costs have continued to rise, leading to a significant buildup of unpaid dues.

Delhi’s Rs 38,500 Crore Power Gap Explained
According to filings cited by TOI, the regulatory assets include:
Rs 19,174 crore for BRPLRs 12,333 crore for BYPLRs 7,046 crore for TPDDLTogether, this amounts to nearly Rs 39,000 crore in deferred costs that now need to be recovered from consumers.

An official told TOI that delays in recovery have increased the burden due to accumulating interest.

Supreme Court Timeline Pushes Recovery Till 2031
The issue gained urgency after a Supreme Court directive in August 2025, later modified in October 2025, which mandated time-bound recovery of regulatory assets.

The court ordered that dues must be cleared between April 1, 2024, and March 31, 2031, stating that indefinite delays are not in public interest.

APTEL has now reinforced this timeline, pushing regulators to begin immediate action.

Audit Dispute Between DERC and APTEL
DERC had proposed a CAG-led audit before initiating recovery, but APTEL rejected the proposal and instead ordered a chartered accountant-led “strict and intensive audit” to be completed within three months.

As reported by TOI, the tribunal clarified that the Supreme Court’s direction did not specifically require a CAG audit.

Delhi Government Yet to Respond
A Delhi government official told TOI that the order is still under review.

The Delhi government and DERC had not issued an official response at the time of reporting.

What It Means for Consumers
With recovery now mandated, electricity consumers in Delhi should prepare for:
Gradual increase in monthly power billsIntroduction of regulatory asset surchargeLong-term tariff adjustments over seven yearsWhile the move aims to stabilise discom finances, it is likely to reignite debate over tariff freezes, subsidies, and rising household costs in the capital.

Inputs from TOI

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