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The APTEL, through its order dated 27.05.2026 in the matter of DERC v. Forum of Regulators & Ors., 1 dismissed the review petitions filed by the Delhi Electricity Regulatory Commission (“DERC”) seeking review of APTEL’s earlier order dated 20.04.2026 concerning conduct of strict and intensive audit of Delhi distribution licensees (“DISCOMs”); and (ii) commencement of liquidation of regulatory assets.
In RP No. 7 of 2026, DERC sought review of APTEL’s direction quashing the approval granted by the Lt. Governor for conduct of special audit of Delhi DISCOMs through the Comptroller and Auditor General of India (“CAG”) and directing appointment of a chartered accountant for conducting such audit. DERC contended that APTEL’s earlier interim orders dated 11.02.2026 and 26.09.2025 had permitted DERC to proceed with CAG audit and therefore the order dated 20.04.2026 suffered from manifest error. APTEL rejected the contention holding that the earlier orders merely recorded submissions of DERC and did not approve entrustment of audit to CAG. APTEL further held that its powers under Section 121 of the Electricity Act, 2003 permitted it to ensure compliance by Regulatory Commissions with statutory provisions while implementing directions of the Supreme Court vide judgment dated 06.08.2025 in BSES Rajdhani Power Ltd. vs. Union of India2. However, considering the procedure prescribed under the Electricity Regulatory Commission (Appointment of Consultants) Regulations, 2001, APTEL granted DERC 45 days to complete the process of appointment of a chartered accountant for conduct of the audit. Accordingly, APTEL dismissed RP No. 7 of 2026.
In RP No. 8 of 2026, DERC sought recall/modification of APTEL’s directions requiring commencement of liquidation of regulatory assets of Delhi DISCOMs. APTEL held that the grounds raised by DERC had already been considered and rejected in the order dated 20.04.2026 passed in OP No. 1 of 2025 and therefore no case for review was made out. APTEL observed that there was no impediment in commencement of the liquidation process and noted that the tentative regulatory assets quantified by DERC itself amounted to approximately INR 38,552 crores, which would require several years for liquidation. Emphasising on consumer interest and compliance with the Supreme Court’s directions, APTEL directed DERC to commence the process of liquidation of regulatory assets positively from 16.06.2026.
Footnotes
1 Review Petition No. 7 of 2026 & Review Petition No. 8 of 2026 & IA No. 1047 of 2026 in Original Petition No. 1 of 2025.
2 2025 SCC OnLine SC 1637.
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