Discoms authorised to recover Rs 27,000 cr regulatory assets: Delhi Power Minister

New Delhi: Delhi Power Minister Ashish Sood announced on Monday that power distribution companies (discoms) have the authorisation to recover Rs 27,000 crore in regulatory assets. He added that the government is in discussions with the Delhi Electricity Regulatory Commission (DERC) to address the matter.

“The Delhi government will ensure that residents do not face additional financial strain due to electricity charges,” Sood stated. He reiterated the BJP-led government’s focus on maintaining stable power tariffs.

During the Question Hour in the Delhi Assembly, AAP MLA and former minister Imran Hussain questioned whether power tariffs would be increased, given the need to clear the regulatory assets within three years.

In response, Sood alleged that the previous AAP administration left a financial burden of Rs 27,000 crore in regulatory assets. “Discoms have the authority to recover this sum from consumers through revised tariffs,” he explained.

Regulatory assets represent costs incurred by discoms that can be reclaimed from consumers through future tariff adjustments. These accumulate when the power regulator, in this case, the DERC, postpones the recovery of expenses, leading to deferred rate increases. Sood pointed out that electricity rates remained unchanged during AAP’s 10-year tenure. “The previous government failed to defend the interests of Delhi residents in court when tariff orders were mandated by a High Court ruling,” he alleged.

Blaming the former administration for financial mismanagement, Sood claimed that Delhi’s citizens are now bearing the consequences. “There are people who want electricity rates to rise so they can leverage the issue for political purposes,” he remarked.

The DERC has begun consultations regarding possible tariff adjustments. It has invited feedback from stakeholders on petitions filed by discoms, including BRPL, BYPL, and TPDDL, concerning their financial requirements for 2024-25. A public hearing on the matter is scheduled for March 27.