DERC Urges Supreme Court for 7 Years to Clear INR 31,552 Crore Discom Dues

The Delhi Electricity Regulatory Commission (DERC) has asked the Supreme Court for seven years instead of four to liquidate regulatory assets worth INR 31,552 crore owed to private power distribution companies in the capital.

The plea comes in response to the court’s August 6 order directing that the dues, accrued in favour of BSES Rajdhani, BSES Yamuna, and Tata Power Delhi Distribution Ltd., be cleared by April 2028.

DERC warned that compressing recovery into four years would trigger a 70–80 percent spike in tariffs, passing the entire burden onto consumers. A staggered seven-year plan, it argued, would cushion Delhi residents from a steep price shock.

Appearing for DERC, Solicitor General Tushar Mehta told the bench that while private discoms are entitled to profit, “the common man will suffer most if the timeline is not extended.”

A bench of Justices PS Narasimha and AS Chandurkar said the matter may need to go back to the original bench led by Justice Narasimha, along with Justice Sandeep Mehta, which had delivered the August ruling.