RInfra discoms to recover Rs 21,413 crore worth of power dues after SC order

Reliance Infrastructure (RInfra) on Friday announced that its power distribution arms, BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, will recover Rs 21,413 crore in regulatory assets over the next four years, following a Supreme Court ruling.

The two discoms, which supply electricity to 5.3 million households in Delhi, are part of a group of private utilities set to benefit from the apex court’s directive for clearing long-pending regulatory dues. On Wednesday, the court ordered that regulatory assets, along with carrying costs amounting to Rs 27,200.37 crore, be paid within three years to Delhi’s three private discoms.

Regulatory assets, essentially deferred revenue gaps to be recovered through future tariffs, stood at Rs 12,993.53 crore for BSES Rajdhani, Rs 8,419.14 crore for BSES Yamuna, and Rs 5,787.70 crore for Tata Power Delhi Distribution Ltd as of March 31, 2024.

RInfra said its subsidiaries had approached the Supreme Court in 2014 through a writ petition and civil appeals, contesting “non-cost reflective tariff, unlawful creation of regulatory asset and non-liquidation of regulatory asset.” The court, after extensive hearings involving state governments and state electricity regulators, laid down a framework for repayment.

As per the order, Electricity Regulatory Commissions will have to provide a clear roadmap for liquidation of existing regulatory assets, factoring in carrying costs. The commissions have also been directed to conduct strict audits to examine why the discoms continued operations without recovering these dues.