Delhi Electricity Regulatory Commission

What Delhi Electricity Regulatory Commission does

The Delhi Electricity Regulatory Commission (DERC) is the statutory electricity regulator for the National Capital Territory of Delhi, established in 2003 under the Electricity Act, 2003, and owned by the Government of NCT of Delhi. It is a non-commercial government body whose mandate is to determine electricity tariffs, issue and oversee licenses for distribution companies, adjudicate consumer grievances under Section 142, and process Annual Revenue Requirement, true-up, and Multi-Year Tariff petitions. Its licensed distribution licensees comprise BSES Rajdhani Power Limited (BRPL, south and west Delhi), BSES Yamuna Power Limited (BYPL), Tata Power Delhi Distribution Ltd (TPDDL, north and northwest Delhi), and NDMC.

DERC's operational scope encompasses tariff setting for all consumer categories, supply code and performance standards compliance monitoring, and consumer grievance redressal forums and Electricity Ombudsman oversight. Between 2025 and 2026 it has materially expanded its regulatory product surface: it notified the RPO and REC Framework Implementation Regulations 2025 (escalating the Renewable Purchase Obligation from 33.01% in 2025-26 to 43.33% by 2029-30 with an Energy Storage Obligation from 2026-27); approved a 97.5 MW/195 MWh battery energy storage portfolio for BRPL across five south and west Delhi substations; introduced an automatic Fuel and Power Purchase Adjustment Surcharge (FPPAS) mechanism with a 10% cap and annual true-up; approved a 2.4% average Power Purchase Adjustment Cost hike lifting the PPAC cap from 14.5% to ~17.5-17.9%; and approved India's first interstate peer-to-peer solar trading pilot via the India Energy Stack blockchain platform built by REC Limited, in collaboration with the Uttar Pradesh Electricity Regulatory Commission.

The commission has no traditional revenue model. DERC is funded through government allocations, does not monetize its regulatory services, and does not sell products; its customer-facing interface is composed of DISCOMs, large C&I consumers, rooftop-solar prosumers, and domestic consumers in Delhi. The most material operational risk is governance: the chairperson position has been vacant since Justice Umesh Kumar's retirement in July 2025, the commission has been functioning with pro-tem members since September 2024, the Supreme Court ordered the Delhi government in May 2026 to finalize chairperson and member appointments within two months, and ~₹38,500 crore in accumulated DISCOM regulatory assets remain subject to pending liquidation and a CAG audit review.

Name

Delhi Electricity Regulatory Commission

Legal name

Delhi Electricity Regulatory Commission

Website

https://derc.gov.in

Company type

Private

Founded year

2003

Operating status

Operating

Headcount range

51–100 employees

Short description

The Delhi Electricity Regulatory Commission (DERC) is the statutory regulator for electricity tariffs, licensing, and consumer grievances in the National Capital Territory of Delhi, serving licensed distribution companies BRPL, BYPL, TPDDL, and NDMC under the Electricity Act, 2003.

Ownership category

akta.pro rank

Product category

Electricity Regulation

NAICS

Regulation and Administration of Communications, Electric, Gas, and Other Utilities (92613), Regulation and Administration of Communications, Electric, Gas, and Other Utilities (926130)

SIC

Electric Services (4911), Electric, Gas & Sanitary Services (4900)

akta.pro primary industry

Energy, Utilities & Natural Resources Regulators (BPAIAOAJ)

akta.pro secondary industries

DER Grid Services & Market Enablement (Ancillary Services, Flexibility) (EUADALAK), Cross-Border EAC Trading & Compliance (Multi-registry, Multi-jurisdiction) (EUAGAFAJ)

Keywords

• Electricity tariff regulation
• Power distribution licensing
• Utility regulatory oversight
• Consumer grievance redressal
• Electricity market regulation

Headquarters

HQ city

New Delhi

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Others

Core offering

Delhi Electricity Regulatory Commission (DERC) is a statutory regulatory body that determines electricity tariffs for distribution companies in Delhi, issues and administers licenses to power distribution utilities (BRPL, BYPL, TPDDL, NDMC), adjudicates consumer grievances under Section 142 of the Electricity Act, 2003, and oversees regulatory compliance for the Delhi power sector. It also runs regulatory mechanisms such as the automatic Fuel and Power Purchase Adjustment Surcharge (FPPAS) and pilots for peer-to-peer renewable energy trading.

Product overview

Delhi Electricity Regulatory Commission (DERC) is a statutory regulatory body that operates as a single unified regulatory service rather than a technology product company. DERC's offerings consist of regulatory services including tariff determination, consumer grievance redressal, utility licensing, and regulatory compliance oversight for Delhi's power distribution sector. The commission has recently launched innovative regulatory mechanisms including a peer-to-peer energy trading pilot and an automatic Fuel and Power Purchase Adjustment Surcharge (FPPAS) mechanism for DISCOM cost recovery.

Differentiator

Problem solved

Functional benefit

Products and services

• Tariff Orders
• ARR/True-up/MYT Petitions
• SOP Compliance Data
• License Issuance to Utilities
• Consumer Grievance Redressal
• Fuel and Power Purchase Adjustment Surcharge (FPPAS)
• Peer-to-Peer Energy Trading Pilot

Named customers4 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature2 records

Partnerships

Four partnerships are on record, tiered flagship and core.

• Uttar Pradesh Electricity Regulatory Commission (UPERC)flagshipStrategic or Co-development Partner · 20 February 2026Cross-state regulatory collaboration enabling India's first interstate peer-to-peer renewable energy trading between Uttar Pradesh and Delhi through the India Energy Stack blockchain platform. DERC approved the pilot allowing TPDDL and BSES Rajdhani to participate alongside UP's PVVNL, with waived wheeling charges and cross-subsidy surcharges.
• REC LimitedcoreTechnology or IntegrationProvided the India Energy Stack blockchain-based digital platform powering the interstate P2P energy trading pilot between Uttar Pradesh and Delhi, enabling secure transaction management for prosumer-consumer solar energy trading.
• Tata Power Delhi Distribution LtdflagshipStrategic or Co-development PartnerParticipating discom in the 6-month P2P energy trading pilot using blockchain platform, enabling north Delhi consumers and prosumers to trade solar energy directly at negotiated rates.
• BSES Rajdhani Power Ltd (BRPL)flagshipStrategic or Co-development PartnerSouth and west Delhi distribution utility participating in India's first interstate P2P solar energy trading pilot, approved by DERC as part of Phase 1 of the India Energy Stack initiative.

Scale indicators8 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Tamil Nadu Electricity Regulatory Commission (TNERC): State-level regulator for Tamil Nadu operating under the same Electricity Act, 2003 framework with parallel tariff, licensing, and renewable purchase obligation responsibilities.
• Uttar Pradesh Electricity Regulatory Commission (UPERC): State-level electricity regulator for Uttar Pradesh that DERC directly partnered with for the interstate P2P energy trading pilot, sharing the same statutory mandate under the Electricity Act, 2003.
• Gujarat Electricity Regulatory Commission (GERC): Gujarat's state electricity regulator with comparable mandate over tariff orders, RPO compliance, and distribution licensing for multiple DISCOMs.
• Punjab State Electricity Regulatory Commission (PSERC): Punjab's state electricity regulator with equivalent tariff and licensing functions over its distribution licensees, structurally identical to DERC.
• Rajasthan Electricity Regulatory Commission (RERC): State electricity regulator for Rajasthan performing the same statutory functions of tariff determination, licensing, and consumer protection under the Electricity Act, 2003.
• Maharashtra Electricity Regulatory Commission (MERC): State-level statutory electricity regulator for Maharashtra with parallel tariff determination, licensing, and consumer grievance functions, making it the closest peer to DERC by mandate and structure.
• Karnataka Electricity Regulatory Commission (KERC): Karnataka's state electricity regulator with comparable tariff determination, RPO enforcement, and consumer grievance redressal functions across multiple DISCOMs.

Others

• Appellate Tribunal for Electricity (APTEL): Statutory appellate body where DERC orders are challenged, including the ongoing review petition on ₹38,500 crore regulatory asset liquidation, making it the key judicial counterpart rather than a competitor.
• Forum of Regulators (FoR): Statutory body comprising central and state electricity regulators that DERC participates in; relevant as the platform through which the P2P trading model could be scaled nationally.

Broad incumbents

• Central Electricity Regulatory Commission (CERC): India's central-level electricity regulator overseeing interstate transmission tariffs and central utilities, providing the appellate framework (APTEL) under which DERC orders are challenged.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/delhi-electricity-regulatory-commission

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Delhi Electricity Regulatory Commission