The Delhi Electricity Regulatory Commission (DERC) has officially announced the extension of the Delhi Electricity Regulatory Commission (Business Plan) Regulations, 2023, for an additional year, ensuring that the existing regulatory framework remains in force for the financial year 2026-27. The extension allows most operational norms and parameters from the 2023 regulations, which were applicable for FY 2025-26, to continue, while introducing specific updates related to Distribution Loss targets and Renewable Purchase Obligations (RPO).
Under the powers granted to it by the Electricity Act, 2003, the Commission decided that most regulatory norms would remain unchanged. However, it identified the need to recalculate the targets for Distribution Loss based on actual performance data from recent years. The explanatory memorandum issued by DERC indicates that the Commission analyzed division-wise performance data from FY 2021-22 to FY 2024-25 to identify areas where efficiency improvements were possible. This approach allowed the Commission to set realistic yet challenging Distribution Loss targets for Delhi’s power utilities for the upcoming financial year.
The new Distribution Loss targets for FY 2026-27 have been defined as follows: BSES Rajdhani Power Ltd. (BRPL) at 6.43%, BSES Yamuna Power Ltd. (BYPL) at 6.22%, Tata Power Delhi Distribution Ltd. (TPDDL) at 5.49%, and New Delhi Municipal Council (NDMC) at 6.43%. The target for NDMC has been aligned with BRPL’s level, the highest among the three private DISCOMs, due to the unavailability of a detailed division-wise loss breakup for NDMC. To arrive at these figures, DERC applied a method of reducing losses to 13% for divisions identified as “High Loss Prone Zones” and 7.5% for divisions marked as “Medium Loss Prone Zones.” The actual Distribution Loss for FY 2024-25, which ranged from 5.61% to 6.63% across the three main DISCOMs, served as the base for these projections.
On the environmental front, the Commission has made changes regarding renewable energy targets. Regulation 27 of the original 2023 Business Plan Regulations, which addressed RPO, has been removed for FY 2026-27. In its place, the provisions of the DERC (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2025, will govern renewable energy compliance for the next financial year.
The incentive sharing mechanism for any over-achievement or under-achievement of the Distribution Loss targets will continue as defined in the original 2023 regulations. DERC has invited stakeholders to submit their comments or suggestions on these extended regulations by January 27, 2026. The extension is intended to maintain a stable regulatory environment while encouraging incremental improvements in the efficiency and performance of Delhi’s power distribution network.
This extension reflects DERC’s approach to combining regulatory stability with targeted performance enhancements, ensuring that the city’s electricity distribution remains efficient while meeting environmental commitments.
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