DERC hires consultant to finalize 2025-26 tariff order

The Delhi Electricity Regulatory Commission (DERC) is preparing to hire a consultant to help finalize the tariff order for the financial year 2025-26. This follows their recent commitment to the Supreme Court that they will complete this process by May or June 2025. The consultant's role will include helping the DERC with important financial calculations. This involves determining the aggregate revenue requirement (ARR) and reviewing expenses for power generating companies and distribution licensees. The consultant will also ensure that the process aligns with existing regulations and court judgments. DERC officials noted that they are currently working on finalizing tariff orders for previous years as well. This includes true-up orders for the fiscal years 2021-22 and 2022-23. The DERC has not issued tariff orders for three years, but they hope to resolve these issues soon. A tender document for hiring the consultant was released on March 18, and the selection process is expected to finish by late April. Meanwhile, power distribution companies have been advocating for a cost-reflective tariff since 2014, with no prior changes in the rates charged to consumers. Public hearings about the true-up and tariff for the past and current fiscal years are taking place. The next hearing is scheduled for March 27. After these reviews, the DERC aims to issue the new tariff order for 2025-26 as planned.