Supreme Court Sets Rules on Regulatory Asset Recovery

08 Aug 2025 CW Team

The Hon’ble Supreme Court of India has, on 6 August 2025, pronounced its judgment and disposed of the Writ Petitions and Civil Appeals filed in 2014 by BSES Yamuna Power Limited and BSES Rajdhani Power Limited—both material subsidiaries of the company—regarding the recovery of Regulatory Assets.

The petitions challenged non-cost-reflective tariffs, the unlawful creation of Regulatory Assets, and the delay in their liquidation. After extensive hearings involving State Governments and State Electricity Regulatory Commissions, the Court had reserved judgment on 20 February 2025.

In its final ruling, the Court laid out ten principles (‘sutras’) and issued nine binding directions for Electricity Regulatory Commissions (ERCs) and the Appellate Tribunal for Electricity (APTEL), aiming to ensure accountability, transparency, and timely recovery in tariff regulation.

Key directives include:

Tariffs must be cost-reflective as a primary principle.

Regulatory Assets may only be created in exceptional situations, and must not exceed a reasonable percentage—guided by

Rule 23 of the Electricity Rules, 2005, which suggests a cap of 3 per cent of the Aggregate Revenue Requirement (ARR).
Once created, a Regulatory Asset must be liquidated within three years; existing assets must be cleared by 1 April 2028, following a four-year roadmap from 1 April 2024.
ERCs must define a clear recovery roadmap and conduct strict audits of continued non-recovery.
APTEL is tasked with ensuring oversight, issuing directions under Section 121, and registering a suo moto petition to monitor compliance.

In compliance with the ruling, the Regulatory Asset approved by the Delhi Electricity Regulatory Commission (DERC) will be fully liquidated within four years from 1 April 2024, as mandated.

Infrastructure Urban

30 May 2026

Panasonic Showcases Connected Display Solutions

Panasonic Life Solutions India showcased its integrated display, projection, broadcast and communication technologies at Panasonic Tech Summit 2026 in New Delhi. Hosted through its System Solutions Division, the two-day event highlighted connected technology solutions for education, healthcare, retail, transportation, corporate offices and entertainment.The summit, themed ‘Turning Technology into Value’, featured experience-led zones covering QSR, retail, transit, corporate offices, healthcare, education, security, projection, home theatre and professional displays. Panasonic also introduc..

Kapsch to Deliver India’s First C-ITS Project

"Kapsch TrafficCom will deliver India’s first Cooperative Intelligent Transport Systems project on a key expressway near New Delhi. The project will be implemented with Superwave Communication And Infrasolution Limited to demonstrate how connected mobility can improve road safety and traffic efficiency.The pilot will use real-time connectivity and AI-enabled situational awareness to support road users, especially in high-risk areas such as temporary work zones. Drivers will receive alerts on roadworks, maintenance vehicles, hazardous locations, traffic queues and temporary virtual signage di..

Eurobond Net Profit Rises 44 Per Cent

Euro Panel Products, the parent company of Eurobond, reported a 44.13 per cent year-on-year rise in net profit for FY25–26. The company’s revenue from operations grew 18.91 per cent to Rs 503.20 crore, compared to Rs 423.18 crore in the previous financial year.The company’s full-year EBITDA stood at Rs 56.67 crore, marking a 31.82 per cent increase. Profit after tax rose to Rs 26.56 crore, while net worth increased 20.15 per cent to Rs 160.07 crore. Earnings per share for the year stood at Rs 10.84.Divyam Rajesh Shah, Whole Time Director and CFO, Euro Panel Products, said the company’s..