On Wednesday, the Supreme Court directed electricity regulatory commissions (RCs) nationwide to draft a comprehensive plan to clear existing regulatory assets (RAs) within the next three years. The Appellate Tribunal for Electricity (APTEL) was also instructed to register a suo motu petition to monitor and ensure strict adherence to this directive. The ruling came in response to a petition by Delhi’s three key power distribution companies — BSES Rajdhani Power Ltd, BSES Yamuna Power Ltd, and Tata Power Delhi Distribution Ltd — who challenged the Delhi Electricity Regulatory Commission’s (DERC) tariff-setting practices. They claimed that DERC’s approach over the years led to a significant build-up of regulatory assets, which totaled ₹27,200.37 crore, including carrying costs, as of March 31, 2024.
While hearing the case, Justices PS Narasimha and Sandeep Mehta expanded the scope, noting that the RA issue is widespread. For example, Tamil Nadu reported ₹89,375 crore in RAs by FY 2021–22, and Rajasthan exceeded ₹47,000 crore by FY 2024–25. In contrast, states like Andhra Pradesh, Assam, and Maharashtra reported minimal or no RAs, in line with policy reforms.
