Regulatory Assets of Rs 27200 Crore to be paid to Delhi Discoms

Based on recent Supreme Court directives and legal developments in 2025, Delhiites are facing the recovery of significant power sector dues, classified as Regulatory Assets (RAs), which have accumulated to over ₹27,000 crore to ₹28,000 crore. 

Here are the key details regarding the recovery of these regulatory assets:

• Total Amount: As of March 31, 2024, the accumulated regulatory assets (including carrying costs) to be recovered by the three private Delhi DISCOMs—BSES Rajdhani (BRPL), BSES Yamuna (BYPL), and Tata Power Delhi Distribution Ltd (TPDDL)—totaled ₹27,200.37 crore. Some reports, including those from Reliance Infrastructure (which holds stakes in BSES), have indicated this figure could be higher, around ₹28,483 crore as of mid-2025.
• Supreme Court Directive: The Supreme Court (in a judgment around August 2025) mandated that these accumulated regulatory assets must be cleared within a maximum period of four years, starting from April 1, 2024.
• Impact on Consumers: The recovery of these dues is expected to lead to a gradual increase in electricity tariffs or the introduction of specific surcharges (like a power purchase adjustment cost) for consumers in Delhi to bridge the revenue gap.
• Why These Assets Existed: Regulatory assets are deferred revenue gaps created when the Delhi Electricity Regulatory Commission (DERC) did not increase consumer tariffs to match the actual costs incurred by DISCOMs, allowing them to book these losses as assets to be recovered in future years.
• Proposed Timeline Dispute: While the SC mandated a 4-year period, the DERC has requested a seven-year period to recover the dues (specifically ₹31,552 crore in a later filing) to reduce the immediate financial shock on consumers, warning that a 4-year timeline could cause a 70–80% spike in tariffs.
• Status of Recovery: The DERC has initiated the process for tariff revision, including public hearings on petitions for the recovery of these dues. 

Breakdown of Regulatory Assets (as of March 31, 2024):

• BSES Rajdhani (BRPL): ₹12,993.53 crore
• BSES Yamuna (BYPL): ₹8,419.14 crore
• Tata Power Delhi (TPDDL): ₹5,787.70 crore 

Please feel free to contact Power Expert B S Vohra for any story on the issue.

Twitter @vohrabs