The Appellate Tribunal for Electricity (APTEL) on Monday directed the Delhi Electricity Regulatory Commission (DERC) to immediately commence the liquidation of regulatory assets within three weeks.
Besides, the tribunal rejected DERC’s plea for extension by three months, till July 2026, for liquidating regulatory assets (RAs) worth ₹38,552 crore of Delhi Discoms as per the Supreme Court judgement (August 6, 2025).
In August 2025, the Supreme Court directed that the RAs, including carrying costs, have to be paid within three years to Delhi’s private Discoms. RAs are deferred revenue gaps that have to be recovered via tariffs.
“We direct the Commission to commence the process of liquidation of RAs as per the RA judgement of the Supreme Court within three weeks from today (April 20) positively. However, considering the statutory procedure to be followed for issue the true up order, time up to June 30, 2026 is granted for passing true up order of FY24,” said APTEL.
Burden on consumers
The tribunal said that it finds it evident that the DERC has been delaying the liquidation of regulatory assets for one reason or the other, thereby permitting an increase in the amount of regulatory assets day by day, which, it said, would place an additional burden upon the end consumers of the electricity in NCT of Delhi.
“We do not see any cogent and plausible reason which is preventing the commission (DERC) from commencing the liquidation of regulatory assets. The entire conduct of the Commission in this regard appears to be malafide,” it added.
DERC has been holding back its hands on the regulatory assets despite giving repeated undertakings and assurances in this regard to the Supreme Court, to the Delhi High Court and to this Tribunal – the details of which have been noted herein above, as pointed by the Learned Counsels for Delhi Discoms, the order emphasised.
The APTEL set aside the Delhi Electricity Regulatory Commission’s (DERC) move to conduct an audit of Delhi’s power distribution companies (Discoms) through the Comptroller and Auditor General (CAG).
“It is axiomatic that the Supreme Court, while directing the Regulatory Commissions to conduct strict and intensive audit of the Discoms vide RA judgement, has nowhere specified that such audit must be entrusted to CAG. Therefore, we do not find any merit in the submissions of the Ld. ASG that audit by CAG flows directly from the directions issued by the Apex Court in this said judgement,” it added.
The Tribunal directed the DERC to appoint any chartered accountant within one week from today (April 20) with specific direction to conclude the strict and intensive audit of the Delhi discoms in terms of the Supreme Court judgement on RAs.
Published on April 20, 2026