SC says DERC cannot reduce depreciation value arbitrarily

New Delhi, Feb 15 (UNI) The Supreme Court today held that the Delhi Electricty Regulatory Commission (DERC) cannot arbitrarily reduce the depreciation value from 6.9 per cent to 3.7 per cent, to which the discoms were entitled.

A bench of Justices Arijit Pasayat and S H Kapadia upheld an order of the Appellate Tribunal for Electricity that set aside the order of the DERC reducing the depreciation value.

The discoms were demanding higher depreciation value ever since they took over supplying electricity from the Delhi Electric Supply Undertaking.

With the apex court verdict, the discoms stand to gain around Rs 300 crore annually.

The court dismissed an appeal by the DERC challenging the orders of the Appellate Tribunal for Electricity.

The discoms had challenged the orders of the DERC reducing the depreciation value before the Appellate Tribunal for Electricity.

UNI