15th September 2025
Secy.,
Delhi Electricity Regulatory Commission
New Delhi
Subject: Objection Regarding FPPAC Notification – Request for CAG Audit and Public Hearing
Dear Sir,
We are deeply concerned and disheartened by the recent notification issued by DERC proposing an automatic FPPAC monthly escalation of up to 10% in power tariffs for Delhi consumers. Such a move is both unprecedented and unjustified.
It is particularly alarming that DERC, an institution established to regulate power tariffs in the public interest, appears to be abdicating its core responsibility.
Delhi’s consumers are already overburdened with excessive electricity charges — including high fixed charges, inflated sanctioned load costs, numerous surcharges, and an additional 16% Return on Equity (RoE) — all of which cumulatively place a significant financial strain on households.
Furthermore, the outstanding ₹27,200 crores categorized as "regulatory assets" — which continue to accrue heavy carrying costs and interest — raise serious questions about DERC’s oversight. The lack of transparency and accountability in the accumulation of these dues is a matter of grave concern.
Even the court sharply criticized DERC for its "regulatory failure" in allowing this massive amount to accumulate over time. The Supreme Court said it has "serious consequences on all stakeholders, and the ultimate burden is only on the consumer".
Therefore, In the absence of a comprehensive CAG audit and transparent public scrutiny, it is unacceptable from DERC and DISCOMs to continue burdening the people of Delhi — particularly in the context of the existing 49%/51% shareholding arrangement, to avoid the CAG Audit, demands greater regulatory vigilance, not less.
In light of the above, we strongly oppose this proposed automatic tariff escalation and place the following demands:
1. An immediate and comprehensive CAG audit of all Delhi DISCOMs.
2. A public hearing to be held, allowing direct engagement with stakeholders on the issues outlined above.
We urge DERC to act in the public interest and restore faith in the regulatory process. We await your prompt response on this matter.
Sincerely,
B S Vohra
President
EAST DELHI RWAs JOINT FRONT
Krishna Nagar, Delhi – 110051
Email: rwabhagidari@yahoo.in
Cc to Power Minister Delhi
