Discoms may retain depreciation value: SC

In a judgement that could further escalate the electricity tariff in the capital, the Supreme Court today upheld the plea of power discoms to retain their depreciation value at 6.69% and not 3.75% as ordered by the Delhi Electricity Regulatory Commission.

A Bench of Justice S H Kapadia and B Sudarshan Reddy dismissed the DERC appeal which had challenged the Appellate Tribunal of Electricity's (ATE) order which had held that the depreciation should be fixed only at 6.69%.

The judgement in effect means that the government would have to pump an estimated additional Rs 300 crore for meeting the enhanced depreciation value for the power sector companies.