A convoluted tariff regime, under-recoveries, power theft, and unpaid subsidies are threatening the sustainability of the Delhi discoms
Delhi Government is looking at various options to address twin problems facing its three power distribution companies (discoms) namely BSES Rajdhani Power Limited (BRPL), discom for South & West Delhi; BSES Yamuna Power Limited (BYPL) — discom for Central & East Delhi; and Tata Power Delhi Distribution Limited or TPDDL – discom for North Delhi. These are (i) “Regulatory Assets” or RAs of Rs 27,200 crore lying in the books of these discoms; (ii) an equally staggering amount of Rs 26,500 crore they owe to power generation and transmission companies viz. Indraprastha Power Generation Co. Ltd (IPGCL), Pragati Power Corporation Limited (PPCL) and Delhi Transco Limited or DTL at the end of September 2024. The discoms are expected to sell electricity to the consumers at tariffs –duly approved by the Delhi Electricity Regulatory Commission (DERC) – that are set in a manner such that the revenue generated from sale at these tariffs fully cover the power purchase cost plus the cost of wheeling and distribution. The requirement is mandatory under the Electricity Act, of 2003. But, this is rarely complied with.