NEW DELHI: The Residents’ Welfare Associations (RWAs) of Delhi have raised strong objections to the natonal capital Electricity Regulatory Commission’s (DERC) latest draft regulations, alleging that the move will unfairly burden consumers and violate provisions of the Electricity Act, 2003.
On August 27, the DERC issued two draft notifications – Draft DERC (Terms and Conditions for Tariff Determination) (Second Amendment) Regulations, 2025, and Draft DERC (Commercial Scheme) (First Amendment) Regulations, 2025 – inviting stakeholder comments by September 24.
The RWAs questioned the purpose of the changes, particularly the conversion of the Power Purchase Adjustment Cost (PPAC) into a “Fuel and Power Purchase Adjustment Surcharge” (FPPAS), and further into a “Supplementary Regulatory Charge” (SR Charge). They alleged that this mechanism would allow monthly cost adjustments beyond fuel charges, in contravention of the Act.
Citing Sections 61, 62(4) and 64(6) of the Electricity Act, the associations said tariff determination is the exclusive power of the Commission, which can be exercised only once a year and that too primarily on account of fuel variations.
“The draft extends this formula to cover transmission charges, wholesale power costs from all sources, and other items the law does not permit,” the RWAs said in a statement.
They also accused the Commission of neglecting its statutory duties, noting that no tariff order has been issued since 2020–21 and no forensic audit has been conducted since 2002.
“In its last order, the Commission itself admitted miscalculation of PPAC. If these amendments are notified, such corrections will no longer be possible,” the statement added.
The RWAs linked the regulatory lapses to prolonged vacancies and political apathy.
They claimed that for years, lack of coordination between the Centre, the Delhi government and the L-G stalled appointments to the Commission. Even after a SC-appointed chairperson took charge, they alleged, little work was done, while successive governments continued to focus on free electricity schemes rather than regulatory oversight.