Petition for Approval of procurement of power by Distribution Licensees, Adoption of tariff discovered under competitive bidding process and approval of draft PPA – EQ
Summary:
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**1. Executive Summary:**
Tata Power Delhi Distribution Ltd. (TPDDL) is seeking formal regulatory approval from the Delhi Electricity Regulatory Commission (DERC) for a critical, time-bound power procurement strategy to ensure grid reliability and meet customer demand during the peak summer season of 2026. The approval process is currently in an advanced consultative phase, with the Commission seeking final clarifications before issuing its order.
**2. Strategic Objective:**
To proactively secure cost-competitive, short-term power (1 day to 1 year) through a transparent, tariff-based competitive bidding process. This mitigates supply risk and potential cost volatility during the high-demand period of Summer 2026, safeguarding service continuity for consumers.
**3. Key Approval Sought:**
* **Regulatory Concurrence:** Approval under Section 63 & 86(1)(b) of the Electricity Act, 2003, for the procurement methodology.
* **Tariff Adoption:** Formal adoption of the tariff discovered through the competitive bid, ensuring cost recovery.
* **Contract Approval:** Approval of the draft Power Purchase Agreement (PPA), de-risking the contractual framework.
**4. Current Status & Next Steps:**
* **Hearing Completed:** The petition was heard by the DERC bench on **02 January 2026**.
* **Status:** **Order Reserved.** The Commission has not granted immediate approval but has not raised fundamental objections.
* **Action Required:** DERC has mandated a **working-level meeting** between TPDDL officers and Commission staff on **05 January 2026** to resolve final clarifications. This is a standard procedural step indicating the petition is substantively on track but requires alignment on specific details.
* **Forward Path:** A favorable order from DERC is expected following the satisfactory conclusion of these discussions, which will unlock the formal launch of the bidding process.
**5. Business Implications:**
* **Risk Mitigation:** Successful approval is essential for executing the procurement plan on schedule, directly impacting Summer 2026 operational preparedness.
* **Regulatory Compliance:** The process strictly follows central government guidelines, strengthening our regulatory standing.
* **Financial Planning:** Approval provides certainty on the procurement pathway, enabling more accurate financial forecasting and budgeting for the 2026-27 period.
**6. Recommendation:**
Ensure full preparedness of the technical and commercial team for the 05 January meeting with DERC officials. The prompt and clear resolution of their queries is the final gate to obtaining the necessary regulatory clearance to proceed with this strategically vital procurement.
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