DERC Directs Full Upstream EV Charging Infra Costs to be Included in Demand Notes Under PM E-DRIVE
The Delhi Electricity Regulatory Commission has issued a new order mandating distribution companies to recover the full cost of upstream infrastructure for EV charging projects developed under the PM E-DRIVE Scheme through demand notes, ensuring that such costs are not passed on to electricity consumers through tariffs.
July 07, 2026. By Mrinmoy Dey
The Commission noted that under the existing Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017, distribution licensees are required to raise demand notes for applicants seeking electricity connections, including EV Public Charging Stations (EV PCS), Battery Swapping Stations (BSS), and Battery Charging Stations (BCS). However, for low-tension (LT) connections up to 200 kW, demand notes typically cover only Service Line-cum-Development (SLD) charges, security deposits, and road restoration charges, while the remaining upstream infrastructure costs are absorbed into the utilities' Aggregate Revenue Requirement (ARR) and recovered through consumer tariffs.
The PM E-DRIVE Scheme, notified by the Government of India in September 2024, provides subsidies for EV charging infrastructure, including upstream electrical infrastructure such as transformers, cables, protection equipment, mounting structures, fencing, and civil works. The scheme also requires proof of payment of demand notes issued by distribution companies before subsidy disbursement.
According to DERC, Delhi Transco Limited (DTL), which was designated as the State Nodal Agency (SNA) for the PM E-DRIVE Scheme in Delhi, highlighted that the existing demand note framework did not capture the full cost of upstream infrastructure envisaged under the scheme. As a result, part of the infrastructure cost associated with commercial EV charging activities could ultimately be borne by electricity consumers through utility tariffs.
To address this issue, DERC has directed distribution licensees to include the complete upstream infrastructure cost in demand notes raised for all PM E-DRIVE sites identified by the State Nodal Agency. The revised scope will cover not only SLD charges, security deposits, and road restoration charges, but also the cost of distribution transformers, LT and HT cables, AC distribution boxes, circuit breakers, isolators and other protection equipment, mounting structures, fencing, and associated civil works.
The Commission further specified that cost estimates for such infrastructure must be prepared based on the Cost Data Book approved by DERC and applicable at the time of estimate preparation.
Importantly, DERC has ruled that all costs incurred under the PM E-DRIVE Scheme, including upstream infrastructure expenses recovered through demand notes, will be excluded from the ARR of distribution licensees and therefore will not be passed on to electricity consumers in Delhi. Distribution companies have also been instructed to maintain separate accounts and records for all works executed under the scheme and the corresponding payments received.
To strengthen oversight, DTL will maintain consolidated records of PM E-DRIVE sites, demand notes issued by distribution companies, and payments received against those demand notes. The agency will also submit quarterly progress reports to the Commission.
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