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The Appellate Tribunal for Electricity (“APTEL”), vide judgement dated 20.04.2026 in OP No. 1 of 202513 titled In Suo-Moto action under Section 121 of the EA, has exercised its powers, while ensuring compliance of the directions issued by the Supreme Court vide judgement dated 06.08.2025 in Writ Petition (C) 104 of 2014 & batch (“SC Judgement”).
APTEL, while examining the scope of its jurisdiction under Section 121 of the Electricity Act, 2003 (“Electricity Act”), observed that APTEL is empowered to issue such orders, instructions or directions to the appropriate commission as it may deem fit for the performance of its statutory functions under the Electricity Act. It was further observed that such power is supervisory in nature and is to ensure that the commissions act in accordance with the provisions of the Electricity Act, and the Rules & Regulations made thereunder.
In reference to the issue of audit, APTEL held that the direction issued by DERC for conduct of “strict and intensive audit” of DISCOMs through the Comptroller and Auditor General (“CAG”) is not in consonance with the statutory provisions governing the role of CAG. Accordingly, APTEL while setting aside the order of DERC qua audit by CAG directed DERC to appoint an independent auditor for carrying out the audit exercise.
Further, with regards to the issue of liquidation of regulatory assets, APTEL noted that even in the absence of any true up order for the FY 2023-24 there is no impediment before DERC in starting recovery of regulatory assets. Further, it was observed that the delay in liquidation of regulatory assets by DERC is leading to increase in the amount of regulatory assets, placing additional burden upon the end consumers of the electricity in NCT of Delhi. Accordingly, DERC was directed to commence the liquidation of regulatory assets expeditiously and within a time-bound manner.
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