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        Customs & Trade

        DERC functioning without chairman; several top posts vacant

        August 9, 2025

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        New Delhi, Aug 9 (PTI) Power tariff regulator in the national capital DERC has been functioning without a chairman with other crucial posts remaining vacant, even as power discoms, armed with a Supreme Court order, are moving in for recovery of a huge amount Rs 27,000 crores as past dues, official sources said on Saturday.

        Justice (retd) Umesh Kumar who was appointed the chairman of the commission in March this year retired last month.

        No immediate reaction was available from the Delhi government that makes appointments to the Delhi Electricity Regulatory Commission (DERC), including its chairman and two members.

        The Supreme Court earlier this week had directed that regulatory assets, including carrying costs to the tune of Rs 27,200.37 crore, be paid to Delhi's three private discoms -- BYOL, BRPL and TPDDL -- within three years.

        Reliance Infrastructure on Friday said two of its subsidiaries -- BSES Yamuna Power Ltd (BRPL) and BSES Rajdhani Power Ltd (BRPL) will recover Rs 21,413 crore of power dues over the next four years.

        BRPL and BYPL are power distribution companies (discoms) of Reliance Infrastructure (RInfra) that supply electricity to 5.3 million households in the national capital.

        In a regulatory filing, RInfra said its subsidiaries will "recover Rs 21,413 crore of regulatory assets over 4 years", following a Supreme Court order that has set guidelines for the recovery of regulatory assets.

        Under these circumstances, the Delhi Electricity Regulatory Commission (DERC) which determines electricity rates in Delhi is functioning without a chairman.

        Regulatory assets of a discom are deferred revenue gaps that are recovered from consumers with DERC determining the tariff annually.

        Interestingly, electricity rates in Delhi have remained stagnant over the past decade while the last power tariff revision was done by DERC in 2021.

        According to official figures, regulatory assets of Delhi discoms have risen sharply, reaching Rs 12,993.53 crore for BRPL, Rs 8,419.14 crore for BYPL, and Rs 5,787.70 crore for Tata Power Delhi Distribution Ltd (TPDDL) as on March 31, 2024, totalling Rs 27,200.37 crore.

        With the retirement of the Justice (retd) Kumar, the commission is now run by two protem (temporary) members appointed in light of the Supreme Court order.

        Further, several other critical positions, including those of deputy secretary, joint and deputy director (tariff division), executive director (engineering), and executive director (law division) are vacant for several months, official sources said.

        Sources also claimed "differences" among the members and "blame game" involving senior officials, which has impacted functioning of the commission.

        No official response was available from the DERC over the claims of the sources. PTI VIT TRB

        Regulatory assets recovery ordered over multiple years, while the electricity regulator operates without a permanent chair. DERC is operating without a permanent chairman and with multiple senior posts vacant, hampering tariff and regulatory functions. The commission is run by two pro tem members after the chairman's retirement, while key positions in administration, tariff, engineering and legal divisions remain unfilled. A judicial directive requires multi-year recovery of sizeable regulatory assets-deferred revenue gaps recovered through tariffs-imposing a mandated recovery timeline that, combined with the commission's staffing and governance shortfalls, risks effective tariff determination and execution of the recovery mechanism.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Regulatory assets recovery ordered over multiple years, while the electricity regulator operates without a permanent chair.

                                DERC is operating without a permanent chairman and with multiple senior posts vacant, hampering tariff and regulatory functions. The commission is run by two pro tem members after the chairman's retirement, while key positions in administration, tariff, engineering and legal divisions remain unfilled. A judicial directive requires multi-year recovery of sizeable regulatory assets-deferred revenue gaps recovered through tariffs-imposing a mandated recovery timeline that, combined with the commission's staffing and governance shortfalls, risks effective tariff determination and execution of the recovery mechanism.





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