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        Customs & Trade

        DERC extends business plan regulations for another year; new tariff order unlikely

        January 20, 2026

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        New Delhi, Jan 20 (PTI) Delhi Electricity Regulatory Commission (DERC), headless since August last year, has failed to come up with a revised tariff order for the national capital this year as well, officials said on Tuesday.

        The commission had on January 7 released a draft proposal to extend the Business Plan Regulations, 2023, by one year to cover FY 2026-27, inviting stakeholder comments by January 27, 2026.

        No immediate reaction was available from the DERC on the issue.

        "Only after the extended Business Plan Regulations are finalised and issued, will the power utilities be directed to submit their tariff petitions for FY 2026-27," said a senior Delhi government official.

        The DERC has not come up with any tariff order since 2021. Instead, it extended the existing Business Plan Regulations, allowing revision of targets for distribution losses and renewable purchase obligations to be met by the power discoms, the official said.

        The power tariff in Delhi has not been revised since 2014 – a lapse beneficial neither for the power companies nor the consumers.

        Delay in tariff determination leads to an additional carrying-cost burden on consumers, an official source claimed.

        "While the precise timeline for the next tariff order remains uncertain, it appears unlikely to be issued during FY 2025-26," the source said.

        The last detailed order on how much power utilities can charge was issued in September 2021.

        "In exercise of powers conferred under Section 181 read with Section 61 and Section 86(1)(b) of the Electricity Act, 2003 and all other powers enabling it in this behalf and after previous publication, the DERC notifies extension of the period of validity of DERC (Business Plan) Regulations, 2023 till FY 2026-27…" said the commission's notice.

        All parameters of the DERC (Business Plan) Regulations, 2023, applicable for FY 2025-26 are extended for FY 2026-27, except for the distribution loss and renewable purchase obligation targets, it said.

        The target for distribution loss for various discoms will be 6.43 per cent for BSES Rajdhani Power Limited, 6.22 per cent for BSES Yamuna Power Ltd, 5.49 per cent for Tata Power Delhi Distribution Limited (TPDDL), and 6.43 per cent for New Delhi Municipal Council (NDMC) in 2026-27, it said.

        The provisions in DERC (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2025, will apply in 2026-27, added the notification.

        According to Regulation 1 (3) of the existing DERC (Business Plan) Regulations 2023, the validity of these regulations may be extended by the commission as deemed fit.

        The three-member commission has no chairman at present.

        The post that determines electricity rates and makes regulatory decisions has been vacant since August 2025.

        Retired High Court judge Umesh Kumar was appointed chairman of the commission in March. He remained in the position till his retirement in August. PTI VIT VN VN

        DERC extends Business Plan Regulations, delaying a new tariff order and setting distribution loss and RPO targets. The DERC has extended the DERC (Business Plan) Regulations, 2023 through FY 2026-27, retaining FY 2025-26 parameters except for updated distribution loss and RPO targets. Power utilities will be required to submit tariff petitions only after the extended regulations are finalised; provisions of the DERC RPO and REC Framework Regulations, 2025 will apply in 2026-27. Specified distribution loss targets for each discom are set for FY 2026-27, and the commission, currently without a chairman, indicates a new tariff order is unlikely during FY 2025-26.
                          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.

                                DERC extends Business Plan Regulations, delaying a new tariff order and setting distribution loss and RPO targets.

                                The DERC has extended the DERC (Business Plan) Regulations, 2023 through FY 2026-27, retaining FY 2025-26 parameters except for updated distribution loss and RPO targets. Power utilities will be required to submit tariff petitions only after the extended regulations are finalised; provisions of the DERC RPO and REC Framework Regulations, 2025 will apply in 2026-27. Specified distribution loss targets for each discom are set for FY 2026-27, and the commission, currently without a chairman, indicates a new tariff order is unlikely during FY 2025-26.





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                                ActsIncome Tax
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