DERC Extends Business Plan Regulations for FY 2026-27, Delays New Tariff Order
DERC has extended Business Plan Regulations, 2023, by one year to cover FY 2026-27, delaying new tariff orders. The commission operates without a chairman since August 2025, with no tariff revisions since 2014. New distribution loss targets range from 5.49% to 6.43% for different utilities, while the timeline for next tariff order remains unclear.
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The Delhi Electricity Regulatory Commission has extended the Business Plan Regulations, 2023, by one year to cover FY 2026-27, further delaying the issuance of new tariff orders for the national capital. A draft proposal was released on January 7, 2026, with stakeholders invited to submit comments by January 27, 2026. The commission has been operating without a chairman since August 2025, contributing to ongoing regulatory delays.
Regulatory Extension Details
Under the powers conferred by the Electricity Act, 2003, the DERC has extended the validity of the Business Plan Regulations, 2023, until FY 2026-27. All parameters applicable for FY 2025-26 will continue into FY 2026-27, except for distribution loss and renewable purchase obligation targets. Power utilities will only be directed to submit their tariff petitions for FY 2026-27 after the extended Business Plan Regulations are finalized and issued.
Distribution Loss Targets for FY 2026-27
The commission has set specific distribution loss targets for different power distribution companies:
| Utility | Distribution Loss Target |
|---|---|
| BSES Rajdhani Power Limited & NDMC | 6.43% |
| BSES Yamuna Power Ltd | 6.22% |
| Tata Power Delhi Distribution Limited | 5.49% |
The provisions in DERC Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation Regulations, 2025, will also apply in FY 2026-27.
Impact on Tariff Orders
The DERC has not issued any tariff order since 2021, opting instead to extend existing regulations. The last comprehensive order detailing charges for power utilities was issued in September 2021. No tariff revisions have been implemented since 2014, creating a significant delay that negatively impacts both power companies and consumers. According to official sources, such delays result in an additional carrying-cost burden on consumers.
Leadership Vacuum
The three-member commission currently lacks a chairman, with the position vacant since August 2025. Retired High Court judge Umesh Kumar served as chairman from March until his retirement in August 2025. The absence of leadership has contributed to delays in issuing revised tariff orders, as this position is responsible for determining electricity rates and making regulatory decisions.
Outlook
The timeline for the next tariff order remains unclear, with its issuance during FY 2025-26 appearing unlikely. The ongoing situation underscores the need for timely regulatory decisions to benefit both consumers and power companies in Delhi. As stakeholders await further developments, the impact of delayed tariff revisions continues to be felt across the sector.
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