DERC Approves BRPL’s Short-Term Power Procurement For Summer 2026 At ₹5.34/kWh

The Delhi Electricity Regulatory Commission (DERC) has approved a petition from BSES Rajdhani Power Ltd. (BRPL) to procure short-term power for the upcoming summer season of 2026. In its order, the commission has allowed BRPL to purchase 1018 Million Units (MUs) of power at a weighted average rate of Rs. 5.34 per unit. This approval follows a petition filed by BRPL seeking the adoption of tariffs discovered through a competitive bidding process, which was carried out in line with guidelines issued by the Ministry of Power.

The move comes as BRPL anticipates a significant rise in demand during the summer months between April and September 2026. The utility has projected a peak demand of about 4000 MW in its license area, which accounts for roughly 44 percent of the total peak demand across Delhi. BRPL highlighted in its petition that purchasing power directly from the exchange was becoming increasingly difficult as prices often touched the ceiling levels. To avoid the risk of shortages and ensure a reliable supply for its consumers, BRPL opted for a proactive strategy by inviting bids through a tariff-based competitive bidding process.

The tender for power procurement was floated on July 1, 2025, to secure up to 500 MW for the summer season. Several traders and generators participated in the process, including PTC India Ltd., NVVN, and Energy Edge. The tender was designed to cover both slot-wise peak demand and round-the-clock (RTC) requirements. However, there were no bids to meet the specific slot-wise peak shortfall. Instead, bids were received for the RTC supply, which were evaluated by BRPL and later reviewed by the regulator. DERC’s analysis concluded that the tariffs discovered through this process were competitive and in line with prevailing rates in other recent power procurement exercises.

On July 10, 2025, BRPL issued Letters of Award to the successful bidders. DERC, while approving the procurement, also sanctioned these awards in its final order. The commission has directed BRPL to sign proper contractual agreements with the bidders to ensure smooth supply during the approved period. The order further emphasizes that BRPL alone will be responsible for managing its supply obligations to consumers. Importantly, DERC has clarified that any additional financial burden arising out of this procurement will not be passed on to consumers in the true-up process for the financial year 2026-27.

A key condition attached to this approval is that if BRPL has surplus power at any point during the contract period, it must first offer the excess to other distribution companies in Delhi under the Inter DISCOM Transfer mechanism. This provision has been included to ensure that surplus availability benefits the entire city and not just one license area.

With this decision, BRPL has positioned itself to address the challenge of ensuring adequate and reliable power supply during the high-demand summer season. The proactive planning through competitive bidding, the regulatory approval by DERC, and the conditions for power sharing among Delhi’s DISCOMs together reflect an effort to balance consumer interests with the need for a secure electricity supply in the capital.