Delhi Electricity Regulatory Commission v. Tata Power Delhi Distribution Limited 2026 INSC 461 - Electricity Act - DERC Tariff Regulations
Electricity Act, 2003: DERC (Terms and Conditions for Determination of Generation Tariff) Regulations, 2011- Regulation 6.32 - Regulation 6.32 does not, and cannot, override the broader statutory and regulatory framework and the same does not confer an absolute and unconditional right upon the generating utility to recover depreciation from the consumers even for a period when the asset is free to supply electricity. (Para 21) [Context: The Supreme Court held that Tata Power Delhi Distribution Limited could not recover the remaining capital cost of the Rithala gas-based power plant from Delhi consumers through depreciation beyond March 2018, once the plant had ceased supplying electricity to them]
Case Info
Case name: Delhi Electricity Regulatory Commission v. Tata Power Delhi Distribution Limited
Neutral citation: 2026 INSC 461
Coram:
- Justice Pamidighantam Sri Narasimha
- Justice Alok Aradhe
Judgment date: 7 May 2026
Statutes / Regulations referred:
- Electricity Act, 2003: Section 61 (especially 61(d)), Section 62, Section 125
- Code of Civil Procedure, 1908: Section 100 (grounds for second appeal, adopted via Section 125 of the Electricity Act)
- DERC (Terms and Conditions for Determination of Generation Tariff) Regulations, 2011: Regulations 4.1, 6.30, 6.31, 6.32
- DERC (Treatment of Income from Other Business of Transmission Licensee and Distribution Licensee) Regulations, 2005
Case law and citations referred:
- BSES Rajdhani Power Ltd. & Anr. v. Union of India & Ors., 2025 SCC OnLine SC 1637
Three‑sentence brief summary:The Supreme Court held that Tata Power Delhi Distribution Limited could not recover the remaining capital cost of the Rithala gas-based power plant from Delhi consumers through depreciation beyond March 2018, once the plant had ceased supplying electricity to them. Reading Regulation 6.32 of the 2011 Tariff Regulations harmoniously with Regulation 4.1 and Section 61(d) of the Electricity Act, the Court ruled that depreciation recovery from consumers is confined to the period of supply under the approved PPA and cannot be treated as an absolute right over the asset’s entire technical life. Consequently, it set aside the APTEL judgment dated 10.02.2025 and restored the Delhi Electricity Regulatory Commission’s order dated 11.11.2019, answering the substantial questions of law in favour of the Commission.