DERC directed to clear ₹38K-cr dues in 3 weeks

The Appellate Tribunal for Electricity (APTEL) on Monday directed Delhi Electricity Regulatory Commission (DERC) to begin the liquidation of regulatory asset dues of over ₹38,000 crore, holding that there was no “legal impediment” to begin the process, and told it to complete the exercise within three weeks.

- Saloni Bhatia

The development has significant implications for residents of the city, with the possibility that power tariffs could be raised to cover the costs.

The tribunal rejected the DERC plea, seeking time till July 1 to begin the process even as it criticised the delay, noting that it would ultimately burden consumers. It also set aside the DERC’s move to conduct an audit of power distribution companies through the Comptroller and Auditor General (CAG), directing it instead to appoint an independent chartered accountant within a week and complete a “strict and intensive audit” of the discoms within three months, in line with earlier Supreme Court directions.

In its order, APTEL observed that the DERC has been “delaying” the liquidation of regulatory assets for one reason or the other which has led to an increase in the amount of regulatory assets day by day.

“We do not see any cogent and plausible reason which is preventing the commission to commence the liquidation of regulatory assets. The entire conduct of the Commission in this regard appears to be malafide and needs to be deprecated,” said the order.