DERC issued directions for Electricity distribution licensees

Apr 15, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Delhi Electricity Regulatory Commission (DERC) on April 07, 2020, has issued directions to address the hardships being faced by electricity stakeholders under the DERC Tariff Regulations, 2017 and DERC (Supply Code and Performance Standards) Regulations, 2017.

The followings are the directions to the concerned utilities:-

1. Any delayed payment made by the Delhi Distribution Licensees beyond 60 days from the date of the presentation of the bills falling between March 24, 2020 and June 30, 2020, the concerned DISCOMs shall make the payment with Late Payment Surcharge (LPSC) at the reduced rate of 12% per annum that translates into 1% per month.

2. The DISCOMs shall restrict the LPSC charged to retail consumers to the rate lower to actual cost of working capital loan or 12% per annum for the bills raised during the period starting from March 24, 2020 till June 30, 2020.The LPSC shall not be in any case be more than 12% p.a. and shall be charged for the number of days of delay in receiving payment from the consumer by the Distribution Licensee.

3. The DISCOMs shall extend the due date for payment of electricity bills raised during the period starting from March 24, 2020 till June 30, 2020 by further 2 weeks.

4. A moratorium on the payment of Fixed Charges for next three billing cycles beginning from March 24, 2020 is provided to the consumers covered under Public utilities, Industrial and Non-Domestic Tariff Categories. The consumers of these categories may pay Fixed Charges for the bills raised during the period starting from March 24, 2020 till June 30, 2020.

5. DISCOMs shall defer annual review of Sanctioned Load, Contract Demand and submit self-certified quarterly forms or statements for the quarters – Q4FY20 & Q1FY21.

6. A rebate scheme is approved for all consumers for the actual/provisional bills raised during the period of March 24, 2020 till June 30, 2020 so as to ensure continuous power supply: 

a) Payment in Day 1-7 of the Billing Date: 1.0% of the Bill amount or Rs 200, whichever is lower

b) Payment in Day 8-14 of the Billing Date: 0.5% of the Bill amount or Rs 150, whichever is lower

c) No rebate if the consumer is making part payment 

d) Additional rebate of Rs. 20 per bill shall be provided to the consumer if the consumer furnishes the meter reading himself.

7. The Commission had earlier relaxed to the extent that DISCOMS shall bear all types of banking charges, processing fee, convenience fee, for all modes of digital payments up-to Rs. 10,000/- which was earlier allowed till Rs. 5,000/-, against the bills raised during the period of March 24, 2020 till June 30, 2020. Such charges shall not be allowed as pass through in ARR.

8. The electricity Bills may be raised on provisional basis in respect of consumers not covered under Smart Meters and Automatic Meter Reading.

9. In addition to physical copy, the Electricity Bills, actual or provisional, shall also be sent to consumers through electronic mode viz. E-mail, SMS and WhatsApp etc.

These directions are valid for the period from March 24, 2020 to June 30, 2020 subject to further direction issued by the Commission from time to time and are to be strictly complied by Delhi Utilities.


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