The Delhi Electricity Regulatory Commission (DERC) has not revised the power tariff for the national capital this year, remaining without a head since August last year. A draft proposal was released on January 7 to extend the Business Plan Regulations, 2023, by one year to cover FY 2026-27. Stakeholders were invited to comment by January 27, 2026.
According to a senior Delhi government official, power utilities will only be directed to submit their tariff petitions for FY 2026-27 after the extended Business Plan Regulations are finalised and issued. The DERC has not issued any tariff order since 2021, opting instead to extend existing regulations. This extension allows for the revision of targets related to distribution losses and renewable purchase obligations for power distribution companies.
Impact on Consumers and Utilities
The delay in revising tariffs since 2014 has negatively impacted both power companies and consumers. An official source noted that such delays result in an additional carrying-cost burden on consumers. The timeline for the next tariff order remains unclear, with its issuance during FY 2025-26 appearing unlikely.
The last comprehensive order detailing charges for power utilities was issued in September 2021. The DERC’s notice stated that under the powers conferred by the Electricity Act, 2003, the validity of the DERC Business Plan Regulations, 2023, is extended until FY 2026-27. All parameters applicable for FY 2025-26 will continue into FY 2026-27, except for distribution loss and renewable purchase obligation targets.
Distribution Loss Targets
For FY 2026-27, distribution loss targets are set at 6.43% for BSES Rajdhani Power Limited and New Delhi Municipal Council (NDMC), 6.22% for BSES Yamuna Power Ltd, and 5.49% for Tata Power Delhi Distribution Limited (TPDDL). The provisions in DERC Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation Regulations, 2025, will also apply in FY 2026-27.
The commission’s notice highlighted that Regulation 1(3) of the existing DERC Business Plan Regulations, 2023, allows for extending their validity as deemed fit by the commission. Currently, the three-member commission lacks a chairman. The position responsible for determining electricity rates and making regulatory decisions has been vacant since August 2025.
Leadership Changes
Retired High Court judge Umesh Kumar served as chairman from March until his retirement in August. No immediate response was available from the DERC regarding these developments. The absence of leadership has contributed to delays in issuing a revised tariff order.
The ongoing situation underscores the need for timely regulatory decisions to benefit both consumers and power companies in Delhi. As stakeholders await further developments, the impact of delayed tariff revisions continues to be felt across the sector.
With inputs from PTI
