Delhi Power Tariff May Rise as Minister Blames AAP for Rs 27,000 Crore Debt

Team Finance Saathi

    24/Mar/2025

What's covered under the Article:

  • Delhi Power Minister Ashish Sood blames AAP for Rs 27,000 crore debt, leading to possible tariff hikes.

  • DERC has authorized discoms to raise electricity prices to recover pending dues.

  • BJP government actively monitoring the situation while Delhi Assembly discusses the issue.

Delhi’s electricity consumers may soon face a power tariff hike as Power Minister Ashish Sood revealed that the AAP-led government had left a staggering Rs 27,000 crore debt with power distribution companies (discoms) through the Delhi Electricity Regulatory Commission (DERC). This debt, categorized under regulatory assets, may lead to an increase in electricity bills as companies are authorized to adjust tariffs to recover the amount.

Minister Sood Blames AAP for Electricity Price Concerns

Speaking in the Delhi Assembly, BJP’s Power Minister Ashish Sood stated that the previous AAP government’s financial mismanagement resulted in the current crisis. He highlighted that the Delhi High Court had directed DERC to issue a tariff order, but the administration under AAP failed to safeguard public interest.

"The previous government has left a debt of Rs 27,000 crore of regulatory assets with the discoms through DERC. To recover this, the companies are authorized to increase electricity rates," said Sood, responding to AAP MLA Imran Hussain’s query regarding potential power tariff hikes. He also noted that some political groups might be using this situation for their own benefit, but the BJP government is actively engaging with DERC to minimize the impact on consumers.

DERC’s Role in the Electricity Tariff Hike

The Delhi Electricity Regulatory Commission (DERC) is responsible for setting electricity tariffs in the national capital. Under the Delhi High Court’s direction, the DERC was mandated to bring tariff orders, allowing discoms to revise electricity prices in an attempt to clear financial dues. With the authority granted to power companies, Delhi’s electricity rates are expected to rise, affecting millions of residents.

BJP Government’s Stance on Electricity Price Hike

The BJP, which recently returned to power in Delhi after 27 years, is closely monitoring the electricity pricing situation. Delhi Chief Minister Rekha Gupta officially commenced the budget session (March 24-28) with a ceremonial ‘Kheer’ preparation—a gesture symbolizing prosperity. However, the electricity price issue is set to dominate discussions during the session, with the government trying to prevent an excessive burden on consumers.

Impact of Power Tariff Hike on Delhi Residents

If the electricity prices increase, it will have a significant impact on households, businesses, and industries in Delhi. With summer approaching, higher power bills could lead to widespread concerns among consumers. BJP’s government aims to balance financial recovery with public interest, ensuring that discoms do not exploit consumers under the guise of clearing past debts.

Conclusion

The Delhi power crisis is becoming a key political and economic issue, with Minister Ashish Sood blaming AAP for financial mismanagement and DERC permitting discoms to increase tariffs. As the budget session unfolds, all eyes are on the BJP government’s strategy to handle the electricity price hike while ensuring relief measures for Delhi residents.

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