DERC Orders Delhi Discoms to Include Upstream Costs in EV Charging Demand Notes
The Delhi Electricity Regulatory Commission (DERC) issued an order on Wednesday amending its regulations in New Delhi to include the full cost of upstream electricity infrastructure in demand notes issued to EV charging station developers. This regulatory change clears critical financial hurdles for developers of public electric vehicle (EV) charging, battery charging, and battery swapping stations, aligning Delhi's infrastructure expansion with the central government's PM E-Drive scheme.
Previously, under the DERC Supply Code and Performance Standards Regulations, demand notes for low-tension connections up to 200 kW covered only service line and development charges, security deposits, and road restoration costs. The expense of upstream infrastructure—including distribution transformers, high- and low-tension cables, circuit breakers, AC distribution boxes, and protection equipment—was borne by power distribution companies (discoms) and later recovered through tariffs as part of their Aggregate Revenue Requirement (ARR).
Since Delhi’s power tariffs have remained unchanged since the 2014-15 financial year, these costs were not passed on to consumers. However, under the PM E-Drive scheme, which provides subsidies for this upstream infrastructure, charge point operators are required to submit proof of payment of demand notes before 70 percent of the eligible subsidy is released.
The issue was brought before the Commission in May by Delhi Transco Limited (DTL), the nodal agency for implementing the PM E-Drive scheme in the Capital. DTL argued that without regulatory changes, a substantial portion of network strengthening costs for commercial EV charging infrastructure would continue to be borne by discoms and ultimately recovered from consumers, despite the availability of central funds.
Accepting the request, the DERC directed that demand notes will now include all upstream infrastructure components specified under the PM E-Drive scheme, in addition to standard charges. The Commission clarified that these costs will not form part of the discoms' ARR, effectively insulating Delhi's electricity consumers from the expenditure on commercial EV charging infrastructure.
The Commission has also directed discoms to estimate upstream infrastructure costs based on a cost data book approved by the DERC. Officials said the order is expected to remove a major financial and procedural bottleneck in setting up public EV charging stations, enabling developers to claim the full subsidy available under the PM E-Drive scheme and encouraging private investment.
