Will Delhi see higher electricity bills from April? Govt prepares to clear Rs 38,000 crore discom dues

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• Delhi electricity bills may rise from April due to pending dues
• Government plans subsidies to ease tariff hike impact
• Dues to be recovered via surcharge over seven years

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Electricity bills in Delhi may increase from April as the government prepares to clear long-pending dues worth over Rs 38,000 crore to three private power distribution companies, PTI reported.

However, the government is also planning to provide subsidies even if tariffs are raised, to reduce the burden on consumers, the report added.

The move comes after a Supreme Court order issued in August last year, directing that the regulatory assets, including interest costs of about Rs 27,200 crore, be paid to Delhi's three private discoms, BRPL, BYPL and TPDDL, in seven years, according to the PTI report.

Regulatory assets refer to expenses incurred by power companies that are recovered later through electricity bills. In Delhi, these costs have grown significantly over the past decade, mainly because electricity tariffs were not increased during this period.

According to the Delhi Electricity Regulatory Commission (DERC), the total regulatory assets have reached Rs 38,552 crore. As per DERC filing, the outstanding amount includes Rs 19,174 crore for BRPL, Rs 12,333 crore for BYPL and Ra 7,046 crore for TPDDL. The amounts are approved expenditures incurred by the discoms for supplying electricity, the PTI report said.

Officials, as quoted by PTI, said the dues have increased further due to interest accumulating over time, as recovery was delayed. The Supreme Court has also asked DERC to create a proper plan to recover these costs, include interest charges, and carry out a detailed audit explaining the delay.

The recovery is expected to happen through an added surcharge on electricity bills, spread over seven years. Earlier, Delhi Power Minister Ashish Sood in March last year said the discoms were authorised to recover Rs 27,000 crore accumulated as regulatory assets, hinting that the electricity rates may go up in the city.