Supreme Court Orders Electronic Regulatory Commissions to Clear ₹27,200 Cr Regulatory Assets in 4 Years

The Supreme Court has directed all Electricity Regulatory Commissions (ERCs) to clear existing regulatory assets within four years and future ones within three years, citing a ₹27,200 crore loss to Delhi DISCOMs due to tariff delays.

Citing electricity as a public good under Article 39, the Court stated that persistent non-recovery amounts to regulatory failure. ERCs must submit time-bound recovery plans and adhere to Rule 23’s Annual Revenue Requirement cap.

The Appellate Tribunal for Electricity will monitor compliance using its enforcement powers under Section 121 of the Electricity Act to ensure efficient tariff fixation and financial accountability.

[BSES Rajdhani Power Ltd. v UOI & Ors.]