The announcement of the new power tariff  is likely to be delayed as Delhi Electricity Regulatory Commission (DERC) is working without its chairman and legal member. With the retirement of the DERC Chairman, (Retd) Justice Shabhibul ‘Shastri’ on January 9, 2023, DERC is left with just a single member — technical member, Dr AK Ambasht.

The Delhi Government has approved the appointment of Justice (Retd) Rajeev Shrivastava as the next DERC chairman. The same is pending with the Raj Niwas.

Sources in the power sector said that DERC has not-announced the power-tariff for the year FY 22-23 and the year is about to end. The delay in appointment of the DERC Chairperson is likely to further delay in the power tariff in the national Capital.

The DERC fixes power tariff in the national capital every year issuing requisite tariff orders. Sources said as per the direction of the ministry of power in 2021, all state power regulators should issue the tariff orders before April 1 of a financial year. The ministry also said that the tariff order should be cost reflective. DERC had issued the tariff order for the financial year of 2021-22 in September 2021.

"Single member DERC is a gross-violation of the Electricity Act 2003.  With the all-important G20 Summit being held in Delhi over the next few months, Delhi cannot afford to have a single-member DERC", sources added.

In a letter to all chief secretaries including Delhi Chief Secretary,  the Ministry of Power (MoP) has  reminded them of the requirement of the appointment of the Chairperson/ Members to the posts in a time-bound manner. This, the letter says, is a prerequisite for the smooth functioning of the State Electricity Regulatory Commissions (SERCs).  The letter comes days after  a strongly worded letter to APTEL, seeking action against the lone DERC Member  on prima facie grounds of ‘proved misbehaviour’ under Section 90 (2) (f) of the Act. 

The letter reminds the state chief secretaries on the importance of the SERCs in ensuring reliable and quality power to consumers and investments in the power sector by allowing reasonable return on investment.

According to the Electricity Act, the State Government is required to make a reference to the Selection Committee for filling up the vacancy, six months before the superannuation or end of tenure of the Chairperson or Member of the Regulatory Commissions. According to the letter,  sometimes posts of Chairperson/Member are vacant for long time which hampers the smooth functioning of the Regulatory Commissions.  It urges them to take all necessary steps to filling up the vacant posts within the stimulated timeframe as per the Electricity Act.

The SERC and appointment of Chairperson/ Members in the Regulatory Commissions is governed by the provisions of the Electricity Act, 2003. SERCs play an important role in ensuring reliable and quality power to consumers and investment in power sector by allowing reasonable return on investment.

Deputy Chief Minister Manish Sisodia had earlier wrote to Lt Governor VK Saxena, requesting him to "urgently" clear the appointment of the DERC chairman amid continuing tussle between the two sides.

In a separate letter to Secretary, Delhi Lieutenant Governor, the Ministry of Power has written to an appellate tribunal to conduct an enquiry against a Delhi Electricity Regulatory Commission (DERC) member for “proved misbehaviour” and not following provisions of the Electricity Act.

The ministry in a reference to the chairperson of the Appellate Tribunal for Electricity (APTEL) listed various alleged “instances of transgressions” on DERC’s part. The Delhi government has come under fire over “freebies”  from the BJP and Prime Minister Narendra Modi on several occasions.

“Contrary to the above statutory provisions, the DERC has allowed the regulatory assets to increase to Rs 8,955 crore according to the tariff order issued for FY 2021-22 instead of liquidating the same. Till date, the commission has not come up with a trajectory to liquidate these regulatory assets,” said the ministry letter.