Supreme Court Approves Power Tariff Hike In Delhi

In a significant judgment, the Supreme Court has authorised an increase in electricity tariffs in Delhi. The court made it clear that the hike must be reasonable, affordable, and within the limits set by the Delhi Electricity Regulatory Commission (DERC).

The ruling aims to prevent excessive burdens on consumers. The court instructed DERC to develop a comprehensive roadmap detailing when, how, and by how much power tariffs will be raised in Delhi.

This roadmap is expected to ensure transparency and accountability while safeguarding the interests of consumers.

According to reports, the revised power tariffs will apply to all types of consumers, including residential households, commercial establishments, and industrial units. This uniform applicability highlights the broader economic and operational scope of the decision.

While the case originated in Delhi, the court widened its scope during the hearing and sought inputs from other states.

This has raised the possibility that similar tariff revisions could occur nationwide, especially in regions where electricity distribution companies are struggling with unpaid dues.

Pending Regulatory Assets to be Cleared

The court also addressed the long-standing issue of regulatory assets, unpaid dues that distribution companies claim from consumers.

The court ordered the resolution of these within four years, signalling a move towards financial transparency and improved sectoral health.

Delhi’s leading power distributors, BSES Yamuna Power, BSES Rajdhani, and Tata Power Delhi Distribution Limited, filed the original petition.

These companies sought approval for tariff hikes to recover mounting dues. The court’s judgment not only addressed their request but also extended the discussion to a national scale.

The Supreme Court has mandated that all states and union territories must prevent the accumulation of dues owed to power distribution companies.

The court noted that unchecked dues place disproportionate burdens on the end-users, highlighting the impact on consumers.

The ruling marks a crucial shift in India’s electricity regulation landscape. With ₹26,000 crore in unpaid dues over the past 17 years, the court’s decision is a step towards financial rectitude and consumer protection.

Its nationwide ramifications could reshape the way authorities manage power tariffs across the country.

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