Petition for Approval of procurement of power by Distribution Licensees to ensure availability of sufficient power during summer peak and Adoption of tariff and approval of draft PPA – EQ
Summary:
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**1. Case Overview**
– **Petition No.:** 01/2026
– **Date of Hearing:** 10 February 2026
– **Date of Order:** 10 February 2026
– **Petitioner:** Tata Power Delhi Distribution Ltd. (TPDDL)
– **Regulatory Authority:** Delhi Electricity Regulatory Commission (DERC)
– **Coram:**
– Sh. Surender Babbar, Member
– Sh. Ram Naresh Singh, Member
**2. Legal Framework & Purpose of Petition**
– **Filed Under:**
– Section 63 of the Electricity Act, 2003 (Tariff determination through competitive bidding)
– Section 86(1)(b) of the Electricity Act, 2003 (Regulatory functions regarding tariff and power procurement)
– **Objective:** Seeking approval for:
– Procurement of power on **short-term basis** through **tariff-based competitive bidding**
– Adoption of tariff discovered through the bidding process
– Approval of draft **Power Purchase Agreement (PPA)**
– **Guidelines:** As per Ministry of Power’s **Short-Term Procurement Guidelines** (for period >1 day and ≤1 year)
**3. Key Requirement & Timeline**
– **Requirement Period:** Summer peak season – **16 May 2026 to 30 June 2026**
– **Purpose:** Ensure sufficient power availability during high-demand summer months in Delhi
**4. Hearing Proceedings Summary**
– **Petitioner’s Representation:**
– Mr. Buddy A. Ranganadhan, Sr. Advocate
– Mr. Anand Kumar Shrivastava, Counsel
– Mr. Ankit Bhandari, Counsel
– **Observations by DERC:**
– Certain **technical aspects** remain to be addressed
– Specifically related to:
– Quantification of electricity requirement
– Corresponding quantity to be procured under proposed contract
– **Next Steps:**
– Further clarification may be sought from petitioner if required
– **Order reserved** (decision pending)
**5. Business & Regulatory Implications**
| **Stakeholder** | **Implication** |
|—|—|
| **Tata Power-DDL** | Must provide detailed technical justification for projected demand and procurement quantity; regulatory approval essential before signing PPA |
| **DERC** | Exercising prudence check to ensure procurement is neither excessive nor insufficient; will approve tariff only if bidding process was transparent and guidelines followed |
| **Bidders (Generators)** | Await regulatory nod; tariff discovered through bidding will become effective only after DERC adoption |
| **Consumers** | Ensures power availability during summer peak at competitively discovered tariffs; regulatory oversight protects against undue load on tariffs |
**6. Key Takeaways**
– **Status:** Pending (order reserved)
– **Critical Issue:** Demand quantification and procurement volume under scrutiny
– **Timeline Pressure:** With summer peak starting 16 May 2026, timely approval is essential for seamless power supply arrangements
– **Precedent Value:** This order will reinforce DERC’s scrutiny of short-term procurement plans under MOP guidelines
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