Electricity rates in Delhi to rise due to Rs 27,000 cr debt: Ashish Sood

Delhi Power Minister Ashish Sood on Monday stated that power distribution companies (discoms) are authorised to recover Rs 27,000 crore in regulatory assets, indicating a potential increase in electricity tariffs in the city.

During the Question Hour in the Delhi Assembly, AAP MLA and former minister Imran Hussain inquired whether electricity rates would be raised to settle the accumulated regulatory assets within three years.

Responding to the query, Sood blamed the previous AAP government for leaving behind Rs 27,000 crore in regulatory assets.

“The discoms have the authority to recover this amount from consumers through a tariff hike,” he said.

Regulatory assets refer to costs incurred by power distribution companies that can be recovered from consumers in the future through revised tariffs. These assets accumulate when the power regulator—in Delhi’s case, the Delhi Electricity Regulatory Commission (DERC)—defers cost recovery, leading to future rate adjustments.

Sood pointed out that there was no increase in electricity rates during AAP’s 10-year tenure in Delhi.

“As per a High Court order, tariff adjustments were required, but the previous government failed to safeguard the interests of Delhi’s residents in court,” he alleged.

He also suggested that some political figures might be seeking a rate hike to use the issue for political gain.

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Sood assured that the BJP-led administration is actively addressing the matter and is in discussions with the DERC. The regulatory body has already begun the process of tariff revision, engaging with various stakeholders.

In December 2024, the DERC invited public suggestions on tariff petitions filed by power companies, including discoms BRPL (BSES Rajdhani Power Limited), BYPL (BSES Yamuna Power Limited), and TPDDL (Tata Power Delhi Distribution Limited). These petitions concern the true-up of expenses for 2022-23 and the aggregate revenue requirement (ARR) and tariff for 2024-25.

A public hearing on the petitions is scheduled for March 27.