DERC Operates Without Chairman as Key Positions Remain Vacant Amid Power Dues Recovery

The Delhi Electricity Regulatory Commission (DERC) currently lacks a chairman, with other key roles unfilled. This situation arises as power distribution companies (discoms) seek to recover Rs 27,000 crore in past dues, backed by a Supreme Court ruling. Justice (retd) Umesh Kumar, who became chairman in March, retired last month. The Delhi government, responsible for DERC appointments, has not commented on the vacancies.

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Reliance Infrastructure announced that its subsidiaries, BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL), will recover Rs 21,413 crore over four years. This follows a Supreme Court directive to pay regulatory assets worth Rs 27,200.37 crore to Delhi's three private discoms—BYPL, BRPL, and Tata Power Delhi Distribution Ltd (TPDDL)—within three years.

Power Tariff Recovery

BRPL and BYPL, part of Reliance Infrastructure, supply electricity to 5.3 million households in Delhi. A regulatory filing by Reliance Infrastructure confirmed the recovery plan for Rs 21,413 crore of regulatory assets over four years. This recovery aligns with the Supreme Court's guidelines for managing regulatory assets.

Regulatory assets represent deferred revenue gaps that discoms recover from consumers. The DERC sets these tariffs annually. Despite this, electricity rates in Delhi have remained unchanged for a decade, with the last revision occurring in 2021.

DERC's Operational Challenges

The absence of a chairman at DERC has led to operational challenges. Two temporary members are currently managing the commission following the Supreme Court's order. Additionally, several crucial positions remain vacant for months, including those of deputy secretary and directors in various divisions.

Official figures indicate that as of March 31, 2024, regulatory assets for BRPL stood at Rs 12,993.53 crore, BYPL at Rs 8,419.14 crore, and TPDDL at Rs 5,787.70 crore. These figures total Rs 27,200.37 crore.

Sources report internal disagreements among members and senior officials' blame games have further affected the commission's functioning. However, no official statement has been provided by DERC regarding these claims.

The current situation highlights the need for effective leadership within DERC to address these challenges and ensure smooth operations in regulating Delhi's electricity tariffs.

With inputs from PTI