New Delhi: LG Taranjit Singh Sandhu has constituted a three-member selection committee for the appointment of the chairperson and two members of the Delhi Electricity Regulatory Commission (DERC). One of the key tasks before the power regulator is the initiation of a process for the liquidation of nearly Rs 38,500 crore in regulatory assets (RA), which have accumulated over the years due to a gap between the actual cost of power distribution and tariffs charged to consumers.
DERC Composition and Current Status
DERC comprises a chairperson and two members, as mandated under the Electricity Act, 2003. Justice Shabihul Hasnain served as its chairperson from July 2021 to January 2023, Justice Jayant Nath was pro-tem (interim) chairperson between August 2023 and March 2025, before Justice Umesh Kumar, a former Allahabad High Court judge, headed it from March 2025 to July in the same year. In effect, the statutory body has been functioning without a chief for nearly a year. Surender Babbar and Ram Naresh Singh, the two members serving in DERC since September 26, 2024, are functioning in a pro-tem capacity.
Role and Responsibilities of DERC
DERC plays a key role in regulating the generation, transmission, distribution, and supply of electricity across the capital. It is responsible for determining power tariffs, ensuring transparency in the functioning of power utilities, protecting consumer interests, and promoting efficiency and competition in the sector. DERC also adjudicates disputes involving electricity companies and works to ensure reliable and quality power supply in the capital.
Selection Committee Details
The selection committee set up by LG will be headed by Justice S L Bhayana, a retired judge of the Delhi High Court. The chief secretary of Delhi and the chairperson of the Central Electricity Authority will serve as its other two members, according to a notice issued by the Delhi government on May 27. The panel will finalize the selection within three months from May 27 by recommending two names, each for the post of the DERC chairperson and its two members.
“It shall satisfy itself, before recommending any person for appointment, that such person does not have any financial or other interest, which is likely to affect prejudicially his functions as the chairperson and members,” the order stated. It also directed the selection committee to comply with a 2018 Supreme Court judgment, which makes it mandatory for every electricity regulatory commission in the country to include at least one member with a legal or judicial background. This means one of the DERC members should either be a current or former judge, or have held a judicial office, or be a senior legal professional with sufficient experience and qualifications to be appointed as a high court or district judge. This provision is aimed at ensuring proper legal scrutiny in the commission’s decisions and dispute resolution processes.
