New Delhi, March 23 Electricity rates in the city are likely to rise from April as the Delhi government is preparing to disburse pending dues of over Rs 38,000 crore to the three power distribution companies, officials said on Sunday.
The government is, however, planning to subsidize the increase in power tariffs to mitigate the impact on consumers, they said.
The Supreme Court had directed in August last year that regulatory assets, including carrying costs of Rs 27,200 crore, be paid to Delhi's three private distribution companies, BRPL, BYPL, and TPDDL, over a period of seven years.
Regulatory assets—costs expected to be recovered in the future—have increased sharply due to a lack of any increase in power tariffs under the rule of the Aam Aadmi Party.
The Delhi Electricity Regulatory Commission (DERC), the city's power regulator, informed the central agency, the Appellate Tribunal for Electricity (APTEL), in January that the total regulatory assets in Delhi stand at Rs 38,552 crore.
According to the DERC filing, the outstanding amount includes Rs 19,174 crore for BRPL, Rs 12,333 crore for BYPL, and Rs 7,046 crore for TPDDL. These amounts represent the expenditures incurred by the distribution companies for supplying electricity.
The increase in the regulatory asset amounts is due to the accumulation of interest due to the delay in recovery, they said.
The court had also directed DERC to prepare a recovery plan, account for carrying costs (interest), and conduct a detailed audit explaining the prolonged delay in cost recovery.
The recovery is likely to be made through an increased regulatory asset surcharge in electricity bills over a seven-year period.
Delhi Power Minister Ashish Sood said in March last year that the distribution companies were authorized to recover the accumulated regulatory assets of Rs 27,000 crore, hinting that electricity rates may increase in the city.
