Power Bills May Rise In Delhi As Tribunal Rejects Plea Over Unpaid Dues

Electricity bills in Delhi may rise in the coming months after a key legal setback for the Union Territory's power regulator.

The Appellate Tribunal for Electricity (APTEL) has rejected a plea by the Delhi Electricity Regulatory Commission (DERC) seeking more time to clear dues of nearly Rs 30,000 crore linked to power distribution companies.

These dues are part of a wider liquidation plan meant to clear long-pending liabilities in the power sector. Follow Live Updates

DERC had argued that spreading repayments over a longer period would soften the blow for consumers and prevent a sudden tariff spike. However, the tribunal did not agree. Delhi will now have to follow the existing repayment schedule.

This comes after the directions issued by the Supreme Court of India in August 2025. The top court had asked all state electricity regulators to begin clearing past dues from April 2024 and finish the process by April 2028. It also allowed regulators to revise tariffs, if needed, to recover the money.

This, however, puts Delhi in a difficult spot.

In recent years, electricity tariffs were reduced for consumers in the capital. At the same time, unpaid dues kept piling up in the system.

Delhi's situation is also different from states where power distributors are government-owned. In states like Tamil Nadu, governments have indicated they may absorb part of the burden instead of passing it directly to consumers.

Delhi's discoms, including BSES Yamuna Power Limited and BSES Rajdhani Power Limited, are privately run. This limits the scope for the state to shield consumers entirely without large subsidy support.

The recovery, therefore, may have to come through higher tariffs, higher subsidies from the Delhi government, or a mix of both.

So, unless an alternative funding solution is found, electricity bills in Delhi for households and businesses are likely to face upward pressure.