Discoms authorised to recover Rs 27,000 crore regulatory assets: Sood

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Discoms authorised to recover Rs 27,000 crore regulatory assets: Sood

Tuesday, 25 March 2025 | Pioneer News Service | New Delhi

Delhi Power Minister Ashish Sood on Monday said the discoms are authorised to recover Rs 27,000 Crore accumulated as regulatory assets, saying the government was in touch with the Delhi Electricity Regulatory Commission (DERC) in connection with the matter.

The minister said the BJP government is committed to keep power tariff under control.

“The Delhi government will not let the people of Delhi face any additional burden regarding electricity rates,” he said in a statement.

AAP MLA and former minister Imran Hussain during the Question Hour sought to know whether electricity rates in Delhi are going to be raised since regulatory assets of the discoms require to be liquidated in three years.

Replying to the question, Sood said the previous AAP government in Delhi left behind Rs 27,000 of regulatory assets of the discoms.

“The power discoms are authorised to recover this amount from people through hike in power tariff,” he said.

Regulatory assets of a power distribution company (discom) refer to any costs incurred by it that can be recovered from the consumers in future through tariff revisions.

The regulatory assets are accumulated when a power regulator (DERC in case of Delhi) defers the recovery of the amounts incurred by the discoms through future rate hike.

No hike in electricity rates took place during 10 years rule of the Aam Aadmi Party (AAP) in Delhi.

“During the tenure of the previous government, tariff orders were to be issued according to a High Court order and the previous government could not protect the interests of the people of Delhi in the court,” Sood claimed.

The minister said the BJP government is looking into the matter and it is in touch with the Delhi Electricity Regulatory Commission (DERC).

Sood charged that there is a debt of Rs 27,000 Crore on the people of Delhi in the form of regulatory assets due to the previous government’s “inefficiency”.

He said some people wanted the electricity rates to hike so that they can do politics over it.

“The previous AAP government gave the right to the discoms to realise the Rs 27,000 from Delhi people,” he said.

The DERC has already started the process for tariff revision through consultations with various stakeholders.

The Commission had in December 2024 invited suggestions from stakeholders on tariff petitions filed by the power companies, including the discoms BRPL (BSES Rajdhani Power Limited), BYPL (BSES Yamuna Power Limited) and TPDDL (Tata Power Delhi Distribution Limited), for true up of expenses of 2022-23 and aggregate revenue requirement (ARR) and tariff for 2024-25.

A public hearing on the petitions is scheduled to be held by the DERC on March 27.

Earlier,  former Allahabad High Court judge Umesh Kumar was sworn in as the chairperson of the Delhi Electricity Regulatory Commission on Monday.

The oath was administered by Delhi Power Minister Ashish Sood at his office in the Delhi Secretariat.

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