The Delhi Electricity Regulatory Commission (DERC) has removed a key regulatory bottleneck to support the rapid expansion of electric vehicle (EV) charging infrastructure in the national capital under the PM E-DRIVE scheme. The move will enable charging infrastructure developers to utilise central government subsidies for network-related costs, while ensuring that these expenses are not passed on to electricity consumers through tariffs.
According to officials, the existing provisions under the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations allowed demand notes for low-tension electricity connections up to 200 kW to include only service line and development charges, security deposits, and road restoration charges.
Under the earlier framework, the cost of upstream electricity infrastructure—including distribution transformers, high- and low-tension cables, circuit breakers, alternating current boxes, distribution boxes, and protection equipment—was borne by power distribution companies (discoms) as part of their Aggregate Revenue Requirement (ARR). These costs were subsequently recovered through electricity tariffs charged to consumers.
These infrastructure components form an essential part of EV public charging stations, battery charging stations, and battery swapping stations.
However, the PM E-DRIVE scheme provides financial support for upstream infrastructure and requires charge point operators to submit proof of payment of demand notes issued by discoms before 70 per cent of the eligible subsidy can be released.
DERC observed that the existing regulatory framework did not allow discom demand notes to reflect the full infrastructure costs eligible for subsidy support, creating a mismatch between the central government scheme and the prevailing regulations.
The issue was brought before the Commission in May by Delhi Transco Limited (DTL), the nodal agency responsible for implementing the PM E-DRIVE scheme in Delhi. DTL highlighted that unless regulatory provisions were modified, a significant portion of network-strengthening costs for commercial EV charging infrastructure would continue to be borne by discoms and ultimately recovered from consumers through electricity tariffs, despite the availability of central government funding.
In an order issued on July 1, DERC directed that demand notes for EV charging infrastructure must include all upstream infrastructure components specified under the PM E-DRIVE scheme, in addition to the standard charges related to service lines, development, security deposits, and road restoration.
The Commission further clarified that these upstream infrastructure costs will not be included in the annual revenue requirement of discoms. This decision is expected to protect Delhi’s electricity consumers from bearing the costs associated with commercial EV charging infrastructure development.
Under the revised framework, discoms will assess upstream infrastructure costs based on a cost data book approved by the Commission.
Officials said the order is expected to eliminate a major financial and procedural hurdle for developers setting up public EV charging stations. By enabling charge point operators to claim the full subsidy available under the PM E-DRIVE scheme for electricity network infrastructure, the revised regulations are likely to improve project viability and streamline implementation.
The measure is also expected to encourage greater private sector participation in the EV charging ecosystem by providing developers with greater certainty regarding infrastructure cost recovery and subsidy utilisation.
