Electricity may become expensive in Delhi, the burden of recovery of ₹ 30,000 crore is likely to fall on consumers.
Electricity consumers in Delhi may have to face increased bills in the coming times. The reason is that the ongoing dispute regarding the huge amount owed by the power distribution companies and its recovery has now intensified. Hearing the appeal, the Appellate Tribunal (APTEL) has rejected the petition of Delhi Electricity Regulatory Commission (DERC), which had sought more time to clear the old dues of Rs 30 thousand crore. This entire matter is related to the Supreme Court’s order of 2025, in which the Supreme Court had given clear instructions that all the states and the concerned power companies will have to pay the old dues by April 2028 under any circumstances.
Delhi Electricity Regulatory Commission (DERC) owes around Rs 30,000 crore to power distribution companies. Instead of paying this huge amount in one go, DERC had sought additional time to settle it in a phased manner and to ensure that there is no sudden financial burden on the consumers. But the Appellate Tribunal (APTEL) rejected this petition.
How will it affect people’s pockets?
According to the report, now Delhi will have to pay the old dues related to the power sector as per the fixed repayment schedule. In this entire matter, the Supreme Court of India had already directed that the electricity regulators of all the states should start the recovery process of old dues from April 2024 and complete it by April 2028. The outstanding amount will have to be paid in a phased manner within the stipulated time frame. If necessary, amendment or increase in electricity rates can be allowed. Its purpose is said to be to stabilize the financial condition of the power companies. On the basis of this order, pressure has also increased on the electricity regulator DERC in Delhi to ensure the payment of dues of the distribution companies within the stipulated time. Over the years, electricity tariffs in Delhi have remained relatively stable and at times low due to subsidies. This brought relief to the consumers, but the revenue and cost balance of the power distribution companies deteriorated, due to which huge dues accumulated.
According to experts, there are two main ways to recover this dues, either increase in electricity rates or Delhi Government should provide relief to the consumers by increasing the subsidy. Experts believe the most practical option may be a mix of the two. Under this, the government should bear some part in the form of subsidy and the remaining part should be recovered by the power companies by increasing the tariff. This will not suddenly put a huge burden on the consumers, but to maintain the financial balance, both the parties will have to contribute. It is being said that unless an alternative funding model is prepared, it is possible that domestic electricity bills may increase and commercial consumers may also face additional burden.
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