DERC Releases Draft (Supply Code And Performance Standards) (Seventh Amendment) Regulations, 2025

Posted On - 12 June, 2025 • By - King Stubb & Kasiva

Introduction

The seventh amendment to the Delhi Electricity Regulatory Commission (DERC) (Supply Code and Performance Standards) Regulations, 2017 is proposed in a draft notification issued by the commission on May 1, 2025.[1] Under Section 108 of the Electricity Act, 2003, this regulatory development results from directions received from the Government of National Capital Territory of Delhi, so highlighting the cooperative approach between state authorities and regulatory bodies in improving electricity sector governance. Reflecting changing operational needs and financial responsibility measures inside Delhi’s electricity distribution system, the amendment especially targets payment systems for infrastructure projects carried out by government agencies.

Explanation (key points)

This seventh amendment mostly addresses Regulation 24(4) of the main rules, adding a crucial clause addressing payment procedures for particular infrastructure projects. The amendment guarantees that works involving changing High Tension (HT) and Low Tension (LT) lines as well as electrification of Bus Depots carried out by Departments of the Government of National Capital Territory of Delhi will follow a different payment mechanism.

  • Payment Structure and Compliance: The new rule requires that, as changed over time, payments for these designated works match Rule 172(1) of the General Financial Rules (GFR) 2017. This reference to GFR-2017 guarantees that government department projects follow accepted financial policies and procurement rules, so preserving public expenditure’s openness and responsibility.
  • Explicit protection of Delhi’s electricity consumers is one especially important feature of this amendment. The regulation unequivocally states that any expenses related to works completed for the Government of NCT of Delhi will not be passed on the Delhi consumers in the Annual Revenue Requirement (ARR) of Distribution Companies (Discoms). This clause is a very important consumer protection tool since it guarantees that government infrastructure projects do not cause higher electricity rates for common people.
  • Regulatory Authority and Implementation: The amendment shows DERC’s application of authority granted under Regulation 87 of the current Supply Code and Performance Standards Regulations, 2017. Starting from the date of publication in the official Gazette, the regulation will become operative, so indicating the official legal procedure needed for application.

Conclusion

Seventh Amendment Draft (Supply Code and Performance Standards) Regulations, 2025 offers Delhi’s electricity sector a balanced approach to consumer protection and infrastructure development. DERC shows its dedication to both operational efficiency and public interest by clearly defining payment procedures for government department operations and expressly shielding consumers from related expenses.

The amendment’s conformity with General Financial Rules guarantees adherence to more general government financial policies, and the consumer protection clause preserves the regulatory commission’s function as defender of public interest. This legislative development captures the changing character of electricity governance in metropolitan settings, where consumer welfare and open financial practices must be harmonised with infrastructure modernisation.