Advertisement
BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, subsidiaries of Reliance Infrastructure, are set to recover regulatory dues amounting to INR 28,483 crore following a Supreme Court directive. The order mandates that the recovery process, covering regulatory assets and carrying costs, be completed within a specified timeframe, starting retrospectively from April 2024. The ruling comes after a decade-long legal dispute over non-cost reflective tariffs, unlawful creation of regulatory assets, and delayed liquidation, impacting millions of electricity consumers in Delhi.
BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, both subsidiaries of Reliance Infrastructure holding a 51 per cent stake, will recover dues totalling INR 28,483 crore after a Supreme Court decision earlier this week. These two power distribution companies supply electricity to around 5.3 million households in Delhi, with the remaining 49 per cent ownership held by the Delhi government. Advertisement
In a recent regulatory filing, Reliance Infrastructure stated that its subsidiaries would recover INR 28,483 crore in regulatory assets over a four-year period, with the process beginning retrospectively from April 2024. The recovery is in accordance with guidelines laid down by the Supreme Court for the liquidation of regulatory assets.
The Apex Court directed that regulatory assets, including carrying costs amounting to INR 27,200.37 crore, must be paid within three years to Delhi's three private power distributors. These assets, which represent deferred revenue gaps to be recovered in future tariffs, have reached INR 12,993.53 crore for BSES Rajdhani Power Ltd, INR 8,419.14 crore for BSES Yamuna Power Ltd, and INR 5,787.70 crore for Tata Power Delhi Distribution Ltd as of March 2024.
Reliance Infrastructure explained that its subsidiaries had filed a writ petition and civil appeals in 2014, challenging the non-cost reflective tariff structure, the creation of regulatory assets without proper cost reflection, and the delay in liquidation. The Supreme Court heard the matter extensively, involving inputs from state governments and state electricity regulatory commissions.
According to the court's order, Electricity Regulatory Commissions must now outline a roadmap for clearing existing regulatory assets, including provisions for managing carrying costs. The commissions have also been tasked with conducting strict and detailed audits into why the distributors have operated for extended periods without recovering the assets.
With a clear roadmap now mandated, BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd are positioned to begin recovering substantial regulatory dues while ensuring compliance with the court's audit requirements. The decision is expected to have a direct bearing on tariff adjustments in Delhi and could set a precedent for similar disputes in India's power distribution sector.
Source - PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
