Delhi Power Bills May Rise As APTEL Rejects Plea For Unpaid Dues

New Delhi: Amid rising temperatures, the electricity bills in Delhi may rise as the Appellate Tribunal for Electricity (APTEL) has rejected a petition filed by the Delhi Electricity Regulatory Commission (DERC), seeking an extension for repayment of outstanding dues amounting to around Rs 30,000 crore.

Following this, chances are high for an unprecedented surge in electricity bills across Delhi. However, power minister Ashish Sood assured that Delhi government will not impose any additional burden on public.

The entire dispute revolves around repayment of long-pending dues owed by Delhi's electricity distribution companies (DISCOMS). For a long time, the distribution companies have carried outstanding "regulatory assets" amounting to around Rs 30,000 crore. The DERC had urged the Tribunal to extend the repayment deadline slightly to shield consumers from a sudden financial shock. It argued that if this repayment were to be executed immediately or within the currently stipulated time period, it would result in a massive spike in consumers' monthly electricity bills.

However, brushing aside these arguments, APTEL made it clear that the pre-determined schedule for the repayment of outstanding dues must be strictly adhered to. The direct implication is that raising electricity tariffs may now become an unavoidable necessity for the DERC.

In August 2025, the Supreme Court formulated a framework for state regulators across the country to clear long-pending debts within the power sector. Directives were issued to state electricity regulators to clear past dues from April 2024 and complete the entire process by April 2028. The objective was to instill financial discipline in the power sector and mitigate the mounting losses faced by companies.

Under the pressure to comply with the Supreme Court order, the Delhi government and the regulatory commission now find themselves left with limited options.

Experts believe that to recover Rs 30,000 crore, an increase of 10 to 20 percent electricity rates could be witnessed. If the DISCOMs intend to recover this amount within the next two years, consumers across all three categories in Delhi — domestic, commercial, and industrial — may have to cut short on their budgets.

Meanwhile, DERC sources said they are still exploring legal options to structure this burden in such a way that it can be recovered in installments.

Following APTEL ruling, the ball is now in the DERC's court. The tariff hearings scheduled for the coming months will prove decisive for the people of Delhi. If the new tariff rates involve increased charges levied under the guise of a pension surcharge or Power Purchase Agreement Cost (PPAC), Delhiites will need to brace themselves to face the "electric shock" of higher bills just before the onset of the scorching summer heat.

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