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's PIL Gets Over DERC's Solar Cost-Shifting Rules
Issued in PIL Challenging DERC's Solar Cost-Shifting Framework
A Division Bench of the , comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia, on issued on a filed by advocate . The PIL challenges the Delhi Electricity Regulatory Commission's (DERC) framework governing and for renewable energy projects, alleging that project-specific infrastructure costs are being shifted onto the general body of electricity consumers through tariffs.
The court directed the respondents—including DERC, , , , and the —to file within six weeks. The matter is next listed for .
Petitioner Argues Burden on General Electricity Consumers
According to the petition, under the impugned guidelines, distribution licensees are required to bear capital expenditure for Service Line cum Development (SLD) and network augmentation for renewable-energy projects. This expenditure is permitted to be passed through the licensees' , effectively distributing the financial burden among all electricity consumers—including those who neither participate in GNM/VNM arrangements nor receive any project-specific benefit.
The plea contends that “the burden does not end with the one-time financing of that infrastructure since upon capitalisation, the same non-participating consumers may also bear depreciation and the regulated return on those assets over their useful life.” It further highlights that waivers allowed for and other charges become recurring features in the ARR, which all consumers of Delhi pay for as part of their tariff.
Jethra’s fundamental grievance is that electricity consumers across Delhi are being compelled through their monthly tariff to fund infrastructure they neither seek nor use, merely because another class of consumers elects to avail the economic advantages of GNM/VNM. The petition seeks a declaration that are , and requests the formation of an independent committee to examine the issues.
What Happens Next?
The court has not yet delivered a final ruling but has initiated the process by seeking responses from all respondents. The next hearing on December 8 will likely see arguments on the and of the PIL. If the court ultimately rules in favor of the petitioner, it could fundamentally alter how renewable energy infrastructure costs are allocated in Delhi, potentially setting a for other states with similar net metering frameworks.
