Electricity regulation

Regulatory Updates

DERC extends business plan, tightens loss targets for FY 2026-27
By January 23, 2026January 23, 2026

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),…

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Regulatory Updates

DERC proposes four year phase out of open access additional surcharge
By January 23, 2026January 23, 2026

The Delhi Electricity Regulatory Commission (DERC) has proposed amendments to its open access regulations to introduce a mandatory four year phase out of the additional surcharge for consumers. In a draft notification titled the Delhi Electricity Regulatory Commission (Terms and Conditions for Open Access) (Second Amendment) Regulations, 2025, the regulator has proposed changes to align its framework with the Electricity (Amendment) Rules, 2024 issued by the central government. The key proposal involves an amendment to…

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Regulatory Updates

MSERC seeks comments on load factor incentives, CSS and fixed cost recovery
By January 21, 2026January 21, 2026

The Meghalaya State Electricity Regulatory Commission (MSERC) has issued a public notice inviting stakeholder comments on three regulatory proposals covering Load Factor incentives and penalties, the future of Cross Subsidy Surcharge (CSS), and the recovery of fixed costs from consumers. The Commission is reconsidering its earlier decision to discontinue Load Factor-based penalties and rebates. It has proposed a revised incentive and penalty framework linked to actual Load Factor performance of consumers. MSERC has invited views,…

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Regulatory Updates

BERC notifies new intra state deviation settlement regulations
By January 21, 2026January 21, 2026

The Bihar Electricity Regulatory Commission (BERC) has issued the final BERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2025 on 06 January 2026 after completing a public consultation process. The regulations align Bihar’s intra state deviation framework with the Central Electricity Regulatory Commission (CERC) (Deviation Settlement Mechanism and Related Matters) Regulations, 2024. They replace the 2020 regulations and will come into force from 1 June 2026, with a transition period for system and procedural changes….

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News | India

Supreme Court orders states to clear Rs 1.5 lakh crore Discom dues
By August 7, 2025August 7, 2025

Electricity tariffs are likely to increase across India following a Supreme Court order directing all states and Union Territories to recover pending dues owed to power distribution companies over the next four years. These liabilities, known as regulatory assets, have accumulated to over ₹1.5 lakh crore. They stem from the gap between actual electricity supply costs and the lower tariffs approved by state regulators. To keep tariffs low, payments to distribution companies were deferred over…

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India | News

SC: Power regulators cannot probe franchisees under Section 128 of Electricity Act
By August 5, 2025August 5, 2025

The Supreme Court has held that electricity regulators cannot directly investigate power distribution franchisees under Section 128 of the Electricity Act, 2003. It clarified that such franchisees fall outside the direct jurisdiction of regulatory commissions and can only be overseen through the licensed distribution companies that appoint them. A bench comprising Justices J B Pardiwala and R Mahadevan allowed an appeal filed by Torrent Power Limited. The company had challenged a July 2016 order of…

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India | News

Supreme Court exempts power sector regulators’ fees from GST
By July 25, 2025July 25, 2025

The Supreme Court has upheld a Delhi High Court ruling that exempts key regulatory fees charged by electricity commissions from Goods and Services Tax (GST). These include fees for granting distribution licences, regulating electricity supply, and other annual charges collected by the Central Electricity Regulatory Commission (CERC) and the Delhi Electricity Regulatory Commission (DERC). This brings clarity to how GST applies to statutory regulatory functions in the power sector. It also offers relief to electricity…

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Regulatory Updates

Regulatory Developments in Power Generation Sector: May 19, 2025
By May 19, 2025May 19, 2025

APTEL recognises fly ash and coal charge hikes as Change in Law The Appellate Tribunal for Electricity (APTEL) has overturned the Maharashtra Electricity Regulatory Commission’s (MERC) order, declaring additional fly ash transport costs and revised coal charges as “Change in Law” (CIL) events under Power Purchase Agreements (PPAs) between RattanIndia Power Limited and Maharashtra State Electricity Distribution Company (MSEDCL). The case involved three claims. First, APTEL ruled that the Ministry of Environment’s 2016 and…

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Regulatory Updates

Regulatory Developments in Power Distribution Sector: May 7, 2025
By May 7, 2025May 7, 2025

TGERC approves additional surcharge for open access consumers in FY 2025-26 The Telangana Electricity Regulatory Commission (TGERC) has approved an additional surcharge (AS) of Rs 1.45 per kWh for open access (OA) consumers for the first half of FY 2025-26 (April to September). The Federation of Telangana Chambers of Commerce and Industry (FTCCI) contested the proposed AS of Rs 1.69/kWh, deeming it excessive. However, Telangana Discoms (TGDISCOMs) defended the surcharge, arguing that it was…

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India | News

Supreme Court upholds Rajasthan’s 2016 open access power regulations
By April 8, 2025April 7, 2025

The Supreme Court has upheld the 2016 regulations introduced by the Rajasthan Electricity Regulatory Commission (RERC) to govern open access to electricity for industrial consumers. A bench of Justices Vikram Nath and Prasanna B. Varale dismissed appeals by several industrial companies, including Ramayana Ispat Pvt Ltd, challenging Rajasthan High Court decisions that had upheld the RERC rules. The decisions came from both the Jodhpur and Jaipur benches of the High Court. The 2016 regulations introduced…

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