DERC extends business plan, tightens loss targets for FY 2026-27

The Delhi Electricity Regulatory Commission (DERC) has proposed a one year extension of its Business Plan regulations and set revised targets for reducing distribution losses for the financial year (FY) 2026-27.

In a public notice issued on 7 January 2026, DERC informed stakeholders of the draft extension of the DERC (Business Plan) Regulations, 2023. The regulator has proposed extending the validity of these regulations, which define operational and performance benchmarks for power distribution companies (discoms), up to FY 2026-27. Comments and suggestions on the draft have been invited until 27 January 2026.

According to the draft notification and explanatory memorandum, most performance parameters applicable for FY 2025-26 will continue unchanged. However, DERC has proposed fresh targets for distribution losses and renewable purchase obligation. For FY 2026-27, the proposed distribution loss targets are 6.43% for BSES Rajdhani Power Limited (BRPL), 6.22% for BSES Yamuna Power Limited (BYPL), 5.49% for Tata Power Delhi Distribution Limited (TPDDL), and 6.43% for the New Delhi Municipal Council (NDMC). The regulator said these targets are based on an assessment of historical performance up to FY 2024-25 and are intended to drive efficiency improvements, particularly in high and medium loss areas.

For renewable purchase obligation compliance, DERC has proposed that the relevant provisions under the Business Plan regulations will not apply for FY 2026-27. Instead, compliance will be governed by the DERC (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2025.

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