Delhi eyes ₹38,000 crore power dues plan, says consumers won’t feel pinch of tariffs

The Delhi government is exploring ways to cushion the impact, according to a government official aware of the matter.

New Delhi: Delhi power minister Ashish Sood on Monday indicated that the government was examining ways to avoid residents having to pay higher electricity bills even as the Delhi Electricity Regulatory Commission (DERC) continued deliberations to finalise a plan for liquidating regulatory asset dues totalling over ₹38,000 crore, following directions from the Supreme Court.

The Delhi government is exploring ways to cushion the impact, according to a government official aware of the matter. (HT_PRINT)

“The Delhi government will not allow the burden of increased power tariffs to fall on customers,” Sood said. Officials, on conditions condition of anonymity, said that the regulatory assets, essentially dues to distribution companies, could be recovered in the form of a surcharge for consumers, which could potentially be offset by a subsidy.

Regulatory assets are deferred costs for distribution companies that arise when electricity tariffs are not revised in line with rising supply expenses. These costs accumulate over time and are later recovered from consumers, usually with added interest. In Delhi’s case, tariffs have not been revised since 2014–15, leading to a massive build-up of 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 administration plans to conduct a Comptroller and Auditor General (CAG) audit of power distribution companies to examine their financial position.

A final call on the plan to recover the dues is expected to be announced Wednesday, officials familiar with the matter said.

The Delhi government is exploring ways to cushion the impact, according to a government official aware of the matter. “The government is also considering approaching the Centre for assistance,” said another official, who also asked not to be identified.

A final call on the plan to recover the dues is expected to be announced Wednesday, officials familiar with the matter said.

“DERC is required to take a final call on how to raise ₹38,000 crore. Among the options being considered are adding a surcharge on the overall electricity bill,” said the second official. “In such a case, one option for the Delhi government will be to ensure that this surcharge is then waived off for consumers in the form of a subsidy – effectively cushioning the impact of the recovery from the common man,” said the first official cited above.

The proposed plan indicates that recovery will begin from April 1, 2026.

According to a DERC affidavit submitted to the Appellate Tribunal for Electricity (APTEL) in January 2026, the total regulatory assets to be recovered stand at ₹38,552 crore. This includes ₹19,174 crore for BSES Rajdhani Power Limited (BRPL), ₹12,333 crore for BSES Yamuna Power Limited (BYPL), and ₹7,046 crore for Tata Power Delhi Distribution Limited (TPDDL).

The delay has come at a significant cost. According to officials, the interest burden on these dues is increasing by approximately ₹15 crore per day.

The Supreme Court, in a judgment last year, made it clear that such deferrals cannot continue indefinitely. It directed that regulatory assets, along with interest, must be recovered in a structured and time-bound manner, with APTEL tasked with monitoring compliance.