On Friday, Reliance Infrastructure of India stated that its power distribution divisions in New Delhi will recoup 284.83 billion rupees in unpaid dues after the Supreme Court upheld their claims earlier this week. These dues originate from prior tariff shortfalls, wherein regulator-set electricity prices did not fully cover the costs of supply.
According to a court-approved plan, this sum will be collected from consumers over a four-year period starting in April 2024, likely through increased electricity tariffs.
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On Wednesday, the Supreme Court directed electricity regulators nationwide to settle deferred costs and outstanding dues owed to power distribution companies. The court also mandated that state regulators conduct audits and submit recovery plans.
In New Delhi, three distribution companies, including a unit of Tata Power, owed a combined total of 272 billion rupees in unpaid dues by the end of the 2021 fiscal year. These debts are set to be repaid over four years starting in April 2024, according to the court documents.
The Delhi Electricity Regulatory Commission will oversee the recovery process, which is anticipated to lead to increased electricity bills for residents of the capital.
