The Delhi Electricity Regulatory Commission (DERC) has issued the Seventh Amendment to its Supply Code and Performance Standards Regulations, 2017, introducing specific provisions for electricity-related infrastructure projects carried out by distribution licensees (Discoms) on behalf of departments of the Government of NCT of Delhi (GoNCTD).
These Regulations may be called the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) (Seventh Amendment) Regulations, 2025.
The amendment, effective from June 2, 2025 , introduces a structured payment and execution mechanism for infrastructure works like shifting of HT/LT lines, bus depot electrification, and other similar projects.
Key Highlights of the Amendment:
Project Stages Defined:
Work execution has been divided into three stages:
Design & Procurement (survey, design, procurement)
Execution & Installation (civil works, cabling, installation)
Testing & Handover (commissioning, energization, final report)
Payment Terms Based on GFR 2017:
30% Advance on proforma invoice and undertaking
70% on Completion with necessary documentation (invoice, utilization certificate, completion report)
Working Capital Interest Inclusion:
Discoms can include interest on working capital in project cost, based on SBI’s 1-year MCLR + 3.5%.
No Bank Guarantee Required:
Discoms, being regulated utilities, are exempted from furnishing Bank Guarantees for advance payments.
Advance Recovery Mechanism:
If work remains incomplete, advance amount will be recovered via ARR of Delhi Transco Ltd., which will remit funds to the respective govt. department.
Interest on Delayed Payments:
If 70% payment is delayed beyond 45 days, interest (SBI 1-year MCLR + 3.5%) is payable by the department to the Discom.
No Burden on Consumers:
The cost of such govt. infrastructure projects will not be included in Discoms’ Annual Revenue Requirement (ARR), ensuring no impact on consumer tariffs.
This regulation aims to streamline the financial and operational framework between Discoms and government departments, ensuring clarity, accountability, and timely project delivery while safeguarding consumer interests.
