The Delhi High Court has asked the Delhi government to clarify its position on a petition filed by Tata Power Delhi Distribution Ltd challenging recent amendments to electricity supply regulations that, according to the company, place additional financial burdens on power distribution utilities.
The petition relates to changes made to the Delhi Electricity Regulatory Commission’s Supply Code and Performance Standards Regulations, under which distribution companies are required to execute government-mandated infrastructure works through a milestone-based payment system. Tata Power Delhi Distribution has argued that the revised framework removes earlier provisions that allowed compensation and interest on delayed payments, effectively compelling utilities to fund public infrastructure projects from their own resources.
The company has contended that this approach creates cash-flow stress and turns distribution companies into interest-free financiers for government projects, without a clear mechanism to recover costs. It has further argued that the amended regulations are inconsistent with the principles of the Electricity Act, 2003, which provides for recovery of legitimate expenses through approved tariffs.
The court has directed the government to file its response, following which the matter will be examined in further hearings.
