DERC Modifies BRPL Power Procurement Conditions To Ease Operational Challenges

The Delhi Electricity Regulatory Commission (DERC) recently issued an important order on May 21, 2025, addressing a review petition filed by BSES Rajdhani Power Limited (BRPL). The review petition was filed against an earlier order dated April 23, 2025, related to the petition. The original petition concerned BRPL’s request for permission to directly purchase up to 200 megawatts (MW) of power on a short-term basis from Greenko Energies Private Limited. This power was meant to be procured for a specific period from May 16, 2025, to July 31, 2025, during two particular daily time slots: from midnight to 2 AM and from 8 PM to midnight.

In the initial order, the DERC had approved BRPL’s proposal to buy 92.4 million units (MU) of power from Greenko. However, the Commission added a condition in paragraph 8 of the order. This condition required BRPL to try to procure power from the cheapest available source — either the power exchange or Greenko. The Commission said that during the true-up process for the financial year 2025-26, it would allow BRPL to recover the cost based on the lower of the two prices. The price offered by Greenko was ₹9.66 per kilowatt-hour after a rebate. The Commission also warned that if BRPL failed to meet this condition, it would be solely responsible for procuring and supplying power to its consumers at the agreed tariff, and any extra financial burden would not be passed on during the true-up.

BRPL challenged this condition in their review petition, arguing that it was impossible to comply with. They explained that the confirmation of power procurement under the Term-Ahead Open Access (TGNA) regulations from Greenko had to be finalized by 9:15 AM the day before the power was supplied (D-1 day). However, the prices on the power exchange are only revealed around 1 PM on the same day. This timing difference makes it impossible for BRPL to compare prices and choose the cheaper option in time. Additionally, BRPL highlighted that if it failed to procure power from Greenko after confirming the contract, it would face penalties and liquidated damages under its agreement with Greenko and as per guidelines from the Ministry of Power. BRPL warned that this condition could cause severe financial risks for them.

During the hearing, BRPL also informed the Commission that it had filed an appeal with the Appellate Tribunal for Electricity (APTEL). APTEL directed the DERC to first decide on the review petition. Meanwhile, APTEL stayed the application of the condition in paragraph 8 of the original order until the review petition was resolved.

After hearing all the arguments, the DERC noted that the purpose of paragraph 8 was to help reduce the cost of power procurement and protect consumer interests. However, the Commission also recognized that the condition should not be impossible for BRPL to fulfill. To clear up this issue, the DERC modified the original order. It deleted the part in paragraph 8 that required BRPL to buy power from the cheaper source between the power exchange and Greenko. Instead, the modified paragraph now states that the rate paid to Greenko will be limited to the average rate of power purchase or sale through the power exchange during the same month for the Delhi region. This change follows Regulation 152(c) of the DERC’s tariff regulations from 2017.

The Commission reiterated that if this arrangement does not work, BRPL would remain responsible for procuring and supplying power to its consumers. Any extra financial costs would not be allowed to be passed through during the true-up of the financial year 2025-26. With this modification, the DERC disposed of the review petition, allowing BRPL some clarity and relief in managing its power procurement while still protecting consumer interests.