Delhi's Regulatory Assets Challenge: Power Tariff Dilemma

Delhi Power Minister Ashish Sood announced that power distribution companies (discoms) are authorized to recover Rs 27,000 crore as regulatory assets, a debt accrued due to deferred tariff hikes. The BJP government aims to keep power tariffs stable while addressing the issue with the Delhi Electricity Regulatory Commission (DERC).

Delhi Power Minister Ashish Sood declared on Monday that power distribution companies are authorized to recuperate Rs 27,000 crore accumulated as regulatory assets. The BJP government is in contact with the Delhi Electricity Regulatory Commission (DERC) to manage the situation and maintain stable electricity tariffs.

The minister emphasized that the BJP government is dedicated to preventing any additional financial burden on Delhi's citizens due to electricity rates. During a Question Hour, AAP MLA Imran Hussain queried the potential rise in electricity rates given the need to liquidate discoms' regulatory assets in three years.

Sood noted that the previous AAP government left Rs 27,000 crore in regulatory assets, a debt resulting from postponed tariff hikes. While discoms can recover costs from consumers in future tariff revisions, the BJP vows to ensure affordability. The DERC has commenced tariff revision consultations, with a public hearing scheduled for March 27.

(With inputs from agencies.)