JSA Prism | Electricity and Power

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Delhi Electricity Regulatory Commission issues the Delhi Electricity Supply Code and Performance Standards (Removal of Difficulty) Fourth Order, 2026

The Delhi Electricity Regulatory Commission (“DERC”) has issued the Delhi Electricity Supply Code and Performance Standards (Removal of Difficulty) Fourth Order, 2026 (“4th Removal of Difficulty Order”), with effect from July 1, 2026. It has been issued in exercise of the DERC’s power of relaxation/removal of difficulty under Regulation 85 of the DERC (Supply Code and Performance Standards) Regulations, 2017 (“Principal Regulations”).

Salient features

The DERC has issued the 4th Removal of Difficulty Order to address the following difficulty that was arising between the Principal Regulations and the Government of India’s PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (“PM E-DRIVE Scheme”):
- under the Principal Regulations:
  - Distribution Companies (“DISCOMs”) are required to raise a demand note to the applicant seeking load sanction. The DISCOMs are also required to lay the infrastructure including energisation of the connection for Electric Vehicle (“EV”) Public Charging Stations (“EV PCS”), Battery Swapping Stations (“BSS”) and Battery Charging Stations (“BCS”) after the applicant seeking to install the EV PCS, BSS and BCS makes payment against the demand note raised by the DISCOM in this regard;
  - Regulation 11(3)(ii) provides that the DISCOM will raise the demand note giving its breakup under the heads such as Service Line cum Development (“SLD”) charges, Security deposit, security towards pre-payment meter, Road Restoration (“RR”) charges, reconnection charges, etc; and

- - in respect of Low Tension (“LT”), connections up to 200 (two hundred) kilowatt sanctioned load, the demand note raised by the DISCOMs only covered SLD charges, Security Deposit and Road Restoration (“RR”) charges. While the remaining upstream infrastructure costs required to deliver the sanctioned load are absorbed in the Aggregate Revenue Requirement (“ARR”) of the respective DISCOMs and recovered from Delhi consumers through tariff;

- the PM E-DRIVE Scheme (for setting up of EV PCS, BSS and BCS) provides for subsidy on upstream infrastructure (including distribution transformer, LT and High Tension (“HT”) cables, AC (Alternating Current) distribution boxes, circuit breakers/isolators and other protection equipment, tubular or PCC (Plain Cement Concrete) mounting structures, fencing and civil works) and requires proof that demand notes for such upstream infrastructure have been paid before the release of the first tranche of 70% of the eligible subsidy; and
- if the existing demand note mechanism under Regulation 11(3)(ii) of the Principal Regulations is continued, the full upstream infrastructure cost for EV PCS, BSS and BCS will not get captured in the demand note. Hence, it shifts the cost of commercial EV charging-related infrastructure onto Delhi consumers through the ARR rather than utilising the Central Government subsidy mechanism.
The DERC’s 4th Removal of Difficulty Order provides as under:
- Applicability: Only in case of establishment of sites identified by the State Nodal Agency/Delhi Transco Limited (“DTL”) under the PM E-DRIVE Scheme and any successor/amended scheme of the Central Government for this purpose.
- Scope of demand note for sites under the PM E-DRIVE Scheme:
  - The DISCOM is now required to raise the demand note for LT connections up to 200 (two hundred) kilowatt sanctioned load, in favour of the Charge Point Operator (“CPO”), or the State Nodal Agency/DTL, as the case may be, for every site identified for the implementation of the PM E-DRIVE Scheme.
  - In addition to the standard heads (SLD charges, security deposit, and RR charges), the upstream infrastructure cost will now also include the cost of all components specified as ‘upstream infrastructure’ under the PM E-DRIVE Scheme (i.e., Distribution transformer; LT and HT cables; AC distribution boxes; Circuit breakers, isolators and other protection equipment; Tubular or PCC mounting structures; Fencing; and associated civil works).
- Basis of cost: DISCOM will prepare the estimate of the upstream infrastructure costs to be claimed in the demand note on the basis of the Cost Data Book approved by the DERC, prevailing on the date of the preparation of the estimate.
- Exclusion of costs from ARR:
  - The costs incurred under PM E-DRIVE Scheme including upstream infrastructure claimed in the demand note, will not be passed on to the Delhi consumers and hence, will not be considered in the ARR of the concerned DISCOM.
  - The DISCOM is now required to maintain separate accounts and records in respect of all works executed under PM E-DRIVE Scheme and the corresponding amounts received from CPOs/DTL.
Reporting and monitoring: DTL is required to maintain a consolidated record of: (i) sites under the PM E-DRIVE Scheme; (ii) demand notes raised by the DISCOMs in respect of such sites; (iii) payments received against such demand notes. DTL will also furnish quarterly progress reports to the DERC in respect of the matters covered under this 4th Removal of Difficulty Order in such format as may be specified by the DERC from time to time.
Period of operation: This 4th Removal of Difficulty Order will remain in force during the currency of the PM E-DRIVE Scheme or any successor scheme of the Government of India for this purpose, unless modified, withdrawn or superseded by further Orders of the DERC.

Conclusion

The 4th Removal of Difficulty Order is significant as the DERC has harmonised the existing demand note framework under the Principal Regulations with the Central Government’s PM E-DRIVE Scheme. By requiring DISCOMs to include upstream infrastructure costs in the demand note for EV PCS, BSS, and BCS sites identified under the PM E-DRIVE Scheme. The 4th Removal of Difficulty Order ensures that the Central Government subsidy mechanism is fully utilised for the development of EV charging infrastructure in Delhi. It also safeguards and insulates the consumers of electricity in Delhi from bearing the cost of commercial EV charging infrastructure through the ARR, while simultaneously enabling CPOs and the State Nodal Agency/DTL to avail the subsidy.

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