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Core Purpose

This notification makes the Delhi Electricity Regulatory Commission (Supply Code And Performance Standards) (Seventh Amendment) Regulations, 2025, to amend the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017.

Detailed Summary

The Delhi Electricity Regulatory Commission, under powers conferred by Regulation 87 of the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017, and in pursuance of directions from the Govt. of NCT of Delhi under Section 108 of the Electricity Act, 2003, issued the Delhi Electricity Regulatory Commission (Supply Code And Performance Standards) (Seventh Amendment) Regulations, 2025. These regulations, effective from June 2, 2025, amend Regulation 24 of the Principal Regulations by adding new provisions after sub-regulation 24(4)(iv). The amendment specifies procedures for works such as shifting of HT/LT lines, electrification of Bus Depots, and similar infrastructure projects undertaken by Distribution Licensees (Discoms) on behalf of Departments of the Govt. of NCT of Delhi. The works are divided into three stages: Design and Procurement, Execution and Installation, and Testing, Commissioning and Handing over. Scheme preparation must adhere to the Commission's Cost Data Book (CDB). Payment for each stage is governed by Rule 172(1) of the General Financial Rules (GFR), 2017, with 30% as advance payment upon Proforma Invoice and Undertaking, and the balance 70% plus taxes upon stage completion with specified documents. Interest on working capital for Discoms, equivalent to the State Bank of India's one-year Marginal Cost of Funds Based Lending Rate (MCLR) plus 350 basis points (as applicable on April 1st of the financial year), shall be part of the estimated cost. Discoms are exempt from furnishing Bank Guarantees against advance payments, but must provide an undertaking for recovery adjustment with Delhi Transco Ltd.'s Annual Revenue Requirement (ARR) if works are incomplete. Delays in the 70% balance payment beyond 45 days incur interest at the same MCLR-plus-350 basis points rate, recoverable by the Discom from the concerned Government Department. Crucially, the cost of these works shall not be passed on to Delhi consumers and will not be considered in the Discoms' ARR.

Full Text

REGD. No. D. L.-33002/99 GOVERNMENT OF INDIA Delhi Gazette SG-DL-E-12082025-265366 EXTRAORDINARY PUBLISHED BY AUTHORITY DELHI, THURSDAY, AUGUST 7, 2025/SHRAVANA 16, 1947 [N. C. T. D. No. 170 PART III GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI DELHI ELECTRICITY REGULATORY COMMISSION NOTIFICATION Delhi, the 7th August 2025 Delhi Electricity Regulatory Commission (Supply Code And Performance Standards) (Seventh Amendment) Regulations, 2025. F. No. 17(220)/DERC/Engg./2023-24/7898/750—Pursuant to the directions received from the Govt. of NCT of Delhi under Section 108 of the Electricity Act, 2003, the Delhi Electricity Regulatory Commission, in exercise of the powers conferred by Regulation 87 of the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017 and all other powers enabling it in this behalf, hereby makes the following Regulations to amend the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017 (hereinafter referred to as "the Principal Regulations"): 1.0 Short title and commencement: (1) These Regulations may be called the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) (Seventh Amendment) Regulations, 2025. (2) These Regulations shall come into effect from the date of their notification on 02.06.2025. 2.0 Amendment in Regulation 24(4) of the of Principal Regulations: In Regulation 24 of the Principal Regulations, the following shall be added after sub-regulation 24(4)(iv): "Provided that in respect of works such as shifting of HT/LT lines, electrification of Bus Depots, and other similar infrastructure-related works undertaken by the Distribution Licensee on behalf of Departments of Govt. of NCT of Delhi (GONCTD), the following shall apply: (a) The execution of such works may generally be divided into the following broad stages/milestones: 1. Design and Procurement: Survey, Design Finalization, and Procurement of Material etc. 2. Execution and Installation: Civil Works, Laying of Cables, Installation of Structures and Equipment. 3. Testing, Commissioning and Handing over: Includes testing of the installed infrastructure, energization, and final handover report. (b) The concerned Discom (Licensee) shall prepare the Scheme for the works based on Cost Data Book (CDB) of the Commission applicable on the date of preparation of the Scheme. (c) Payment for each stage/milestone shall be governed by Rule 172(1) of the General Financial Rules (GFR), 2017, as amended from time to time, which as on date, is as follows: 1. 30% of the estimated cost of each stage/milestone shall be paid as advance payment upon submission of Proforma Invoice and Undertaking by the Discom (Licensee). 2. The balance 70% along with taxes as applicable shall be paid upon completion of each tage/milestone based on submission of documents namely Invoice, utilization certificate, and completion report by the Licensee, as applicable. (d) In order to cover the working capital required by the Discom (Licensee) till the release of the balance 70% payments along with taxes, the interest on the said amount, equivalent to the marginal cost of funds based on lending rate (MCLR) for one year of the State Bank of India, as applicable on the 1st April of the financial year, plus 350 basis points, during the period of execution of work, shall form the part of the estimated cost. (e) The Discoms (Licensee) shall not be required to furnish the Bank Guarantee (BG) against advance payment, if any, released to it by the concerned Govt. Department, as it is an electricity utility regulated under the Electricity Act 2003. However, the Discoms (Licensee) while drawing the advance payment as per these provisions shall submit an undertaking that, in case the works are not completed by it, then the recovery of the advance as recoverable shall be adjusted with the ARR of Delhi Transco Ltd., which will remit the said amount to the Govt. department concerned. (f) In case of delay in payment of the balance 70% amount beyond 45 days of submission of final invoice and other documents, interest on the said amount, equivalent to the marginal cost of funds based on lending rate (MCLR) for one year of the State Bank of India, as applicable on the 1st April of the financial year, plus 350 basis points, shall be recoverable by the Discom (Licensee) from the concerned Department of Govt. of NCT of Delhi. (g) The cost of such works shall not be passed on to the consumers of Delhi and, therefore, shall not be considered in the Annual Revenue Requirement (ARR) of the Discoms (Licensee)." RAJESH DANGI, Secy.

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