Latest news with #DERC
Time of India
6 days ago
- Business
- Time of India
SC upholds GST exemption for electricity regulators, dismisses govt's plea
In a big relief to the regulatory bodies, the Supreme Court has upheld the Delhi High Court 's ruling that fees collected by the Central Electricity Regulatory Commission ( CERC ) and the Delhi Electricity Regulatory Commission ( DERC ) for the supply of electricity or grant of electricity distribution licences or as annual/other fees are exempt from Goods and Services Tax (GST). The HC had in January also quashed the show cause notices (SCNs) issued by the Directorate General of GST Intelligence demanding an 18% tax on fees received by CERC and DERC for discharging their regulatory functions. It held that the demand notices were 'arbitrary and unsustainable.' 'We do not find any good grounds to entertain these special leave petitions (by Directorate General of GST Intelligence), a SC bench comprising Justices J.B. Pardiwala and R. Mahadevan said, while endorsing the HC's view that the GST department had clearly failed to grasp the "indubitable fact" that these regulatory functions were being discharged by a quasi-judicial body which had all the trappings of a tribunal. The department had challenged the HC order alleging that the power regulators were not discharging their GST liabilities on amounts received as tariff and licence fees from various power utilities as these functions of the regulators fell under the category of "support services" to electricity transmission and distribution service providers. The GST authorities in the SCN's had also alleged that CERC had even failed to carry out a correct self-assessment of its tax liability, thus failing to discharge its integrated GST of Rs 113 crore between April 2019 to March 2023. A similar notice was issued to the Delhi power regulator. However, the HC had rejected the GST authorities' stand, saying it found 'unable to accept, affirm, or even fathom the conclusion that regulation of tariff, inter-state transmission of electricity, or the issuance of licence would be liable to be construed as activities undertaken or functions discharged in the furtherance of business." According to HC, "the grant of a licence to transmit or distribute (electricity) is clearly not in furtherance of business or trade but in extension of the statutory obligation placed upon a commission to regulate those subjects," the high court had said. The Electricity Act, 2003, makes no distinction between the regulatory and adjudicatory functions vested in and conferred upon an electricity commission, it had added. Those functions are placed in the hands of a quasi-judicial body enjoined to regulate and administer electricity distribution, it had said. "Electricity, undoubtedly, is a natural resource which vests in the State. We have thus no hesitation in observing that the SCNs (show cause notices) infringe the borders of the incredible and inconceivable," the January order stated.
Time of India
6 days ago
- Business
- Time of India
SC upholds GST exemption for electricity regulators, dismisses govt's plea
In a significant win for regulatory bodies, the Supreme Court has upheld the Delhi High Court's decision, exempting the fees collected by the CERC and DERC from GST. This ruling dismisses demands for an 18% tax on regulatory fees, affirming that these bodies perform quasi-judicial functions, not support services. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads In a big relief to the regulatory bodies, the Supreme Court has upheld the Delhi High Court 's ruling that fees collected by the Central Electricity Regulatory Commission ( CERC ) and the Delhi Electricity Regulatory Commission ( DERC ) for the supply of electricity or grant of electricity distribution licences or as annual/other fees are exempt from Goods and Services Tax (GST).The HC had in January also quashed the show cause notices (SCNs) issued by the Directorate General of GST Intelligence demanding an 18% tax on fees received by CERC and DERC for discharging their regulatory functions. It held that the demand notices were 'arbitrary and unsustainable.''We do not find any good grounds to entertain these special leave petitions (by Directorate General of GST Intelligence), a SC bench comprising Justices J.B. Pardiwala and R. Mahadevan said, while endorsing the HC's view that the GST department had clearly failed to grasp the "indubitable fact" that these regulatory functions were being discharged by a quasi-judicial body which had all the trappings of a department had challenged the HC order alleging that the power regulators were not discharging their GST liabilities on amounts received as tariff and licence fees from various power utilities as these functions of the regulators fell under the category of "support services" to electricity transmission and distribution service GST authorities in the SCN's had also alleged that CERC had even failed to carry out a correct self-assessment of its tax liability, thus failing to discharge its integrated GST of Rs 113 crore between April 2019 to March 2023. A similar notice was issued to the Delhi power the HC had rejected the GST authorities' stand, saying it found 'unable to accept, affirm, or even fathom the conclusion that regulation of tariff, inter-state transmission of electricity, or the issuance of licence would be liable to be construed as activities undertaken or functions discharged in the furtherance of business."According to HC, "the grant of a licence to transmit or distribute (electricity) is clearly not in furtherance of business or trade but in extension of the statutory obligation placed upon a commission to regulate those subjects," the high court had said. The Electricity Act, 2003, makes no distinction between the regulatory and adjudicatory functions vested in and conferred upon an electricity commission, it had added. Those functions are placed in the hands of a quasi-judicial body enjoined to regulate and administer electricity distribution, it had said. "Electricity, undoubtedly, is a natural resource which vests in the State. We have thus no hesitation in observing that the SCNs (show cause notices) infringe the borders of the incredible and inconceivable," the January order stated.
Time of India
08-07-2025
- Business
- Time of India
Delhi Chief Minister launches rooftop solar initiative to cut electricity bills
In a move to reduce electricity bills and promote clean energy usage, chief minister Rekha Gupta has initiated widespread implementation of rooftop solar installations across the city under Resco or the utility-led aggregation model. The step, in line with the guidelines of the Union new and renewable energy ministry and facilitated by Delhi Electricity Regulatory Commission (DERC), is expected to bring down the overall cost of electricity and reduce dependence on conventional energy sources, stated the chief minister's office. Gupta said, "Our vision is to make Delhi a clean, energy-efficient and environmentally responsible capital. Through the Resco model , we are ensuring that citizens of Delhi get access to solar energy without any upfront cost. This is a big stride towards PM Narendra Modi's vision of PM Surya Ghar , Muft Bijli Yojana." Under the Renewable Energy Service Company model, both domestic and non-domestic consumers can now get solar rooftop systems installed at their homes or institutions with zero capital investment. Consumers have to offer their roofs for solar plants and the installation will be done by the developer, which will be engaged by the discom concerned through a transparent and competitive bidding process approved by DERC. This ensures that solar power energy is made available to the consumers at a cheaper rate compared to the power currently being supplied by the discoms through conventional sources, said CMO.
Time of India
07-07-2025
- Business
- Time of India
Consumers in Delhi to get solar power infra for free
New Delhi: In a move to reduce electricity bills and promote clean energy usage, chief minister Rekha Gupta has initiated widespread implementation of rooftop solar installations across the city under Resco or the utility-led aggregation model. The step, in line with the guidelines of the Union new and renewable energy ministry and facilitated by Delhi Electricity Regulatory Commission (DERC), is expected to bring down the overall cost of electricity and reduce dependence on conventional energy sources, stated the chief minister's office. Gupta said, "Our vision is to make Delhi a clean, energy-efficient and environmentally responsible capital. Through the Resco model, we are ensuring that citizens of Delhi get access to solar energy without any upfront cost. This is a big stride towards PM Narendra Modi's vision of PM Surya Ghar, Muft Bijli Yojana." You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi Under the Renewable Energy Service Company model, both domestic and non-domestic consumers can now get solar rooftop systems installed at their homes or institutions with zero capital investment. Consumers have to offer their roofs for solar plants and the installation will be done by the developer, which will be engaged by the discom concerned through a transparent and competitive bidding process approved by DERC. This ensures that solar power energy is made available to the consumers at a cheaper rate compared to the power currently being supplied by the discoms through conventional sources, said CMO.
Time of India
05-07-2025
- Business
- Time of India
DERC rejects plea for cost on power tariff
New Delhi: Delhi Electricity Regulatory Commission (DERC) rejected a plea from New Delhi Municipal Council (NDMC) to levy additional power purchase cost adjustment charges (PPAC) of over 50% on electricity tariffs in the second quarter, July to Sept. The council, in its plea before DERC, sought permission to levy and recover PPAC from its consumers for the period July-Sept 2024 quarter. The power regulator, in its order, observed that more than 80% of the total power purchased by NDMC was from short-term and medium-term sources, and its cost was much less than the electricity procured from long-term sources. "Since the petitioner (NDMC) will be charging PPAC on the total power purchase cost, that is, from long-term as well as short-term and medium-term power purchase, the additional PPAC as claimed by the petitioner will be a substantial increase in the consumer tariff for the current quarter," DERC said in its order. You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi According to officials, there are nearly 70,000 power connections in NDMC areas, of which over 60% are domestic. PPAC is a surcharge levied by power discoms to meet the variation in the power purchase costs. It is dependent upon the coal or fuel prices. As per the directions issued by the Union ministry of power in Nov 2021, every state regulatory commission has to place a mechanism for automatic pass-through of fuel and power procurement cost in tariff for ensuring the viability of the power sector. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Emergency Generators in Hajj 'ali: (Prices May Surprise You) Emergency Generator | Search Ads Search Now Undo In the case of Delhi, there is no automatic pass-through, and the discoms levy the PPAC only after verification and approval of DERC. The PPAC is levied as a percentage of the base tariff that includes the fixed cost and energy charges (units consumed) by the consumers. The DERC, in its order on Thursday, noted that the NDMC supplies power to consumers in Lutyens' Delhi, having major institutions and installations, including the Parliament House and various ministries of the Central govt. DERC observed that the NDMC was already recovering suo motu, the PPAC of 8.75% on the total quantum of the power purchase during the current quarter, and therefore its prayer for additional PPAC cannot be considered.
