Supreme Court Sets Timeline for Discom Dues
The Supreme Court of India has ordered all states and union territories to clear the unpaid dues owed to electricity distribution companies (discoms). These unpaid amounts, called “regulatory assets,” must be fully repaid within four years starting April 1, 2024.
Limits and New Rules for Tariffs
The court has also mandated that any new regulatory assets must be paid off within three years. A strict limit has been set—these unpaid dues must not exceed 3% of the annual cost of running the electricity service (annual revenue requirement). This step is meant to ensure that such deferrals do not become a long-term burden.
Delhi Discoms Face Major Dues
In Delhi, three major distribution companies—BSES Rajdhani Power, BSES Yamuna Power, and Tata Power Delhi Distribution—face combined dues of ₹27,200 crore. Consumers aren’t expected to see a sudden jump in electricity bills, as the repayment will happen gradually over the four-year period.
Stronger Oversight for Recovery
To make sure this plan works, the court has empowered the Appellate Tribunal for Electricity (APTEL) to monitor the recovery process closely. APTEL will supervise the creation of detailed recovery plans and ensure that regulators and discoms follow the rules. This aims to protect consumers while ensuring the financial stability of the power sector.
Consumers may see modest increases in their electricity costs over time, but the goal is a fair balance: keeping power running smoothly while helping discoms remain stable and dependable.
