The Delhi Electricity Regulatory Commission (DERC) has issued a new order to ensure that the cost of developing electricity infrastructure for electric vehicle (EV) charging stations under the central government’s PM E-DRIVE Scheme is not passed on to general electricity consumers in Delhi. The order, titled Delhi Electricity Supply Code and Performance Standards (Removal of Difficulty) Fourth Order, 2026, was issued on July 1, 2026.
The decision changes the way the cost of upstream electricity infrastructure is recovered for EV charging projects covered under the PM E-DRIVE Scheme. Earlier, under the Delhi Electricity Regulatory Commission Regulations, 2017, applicants seeking low-tension (LT) electricity connections up to 200 kW were required to pay only for standard service lines, security deposits, and road restoration charges. The cost of upstream infrastructure, including distribution transformers, cables, circuit breakers, and other network equipment, was generally borne by power distribution companies (Discoms). These expenses were later recovered from all electricity consumers through the Aggregate Revenue Requirement (ARR) and included in electricity tariffs.
However, Delhi Transco Limited (DTL), which is the State Nodal Agency for the PM E-DRIVE Scheme, informed the Commission that this arrangement would not be appropriate for charging stations developed under the scheme. Since the PM E-DRIVE Scheme provides financial support from the central government to cover the cost of upstream infrastructure, allowing these expenses to be recovered through consumer tariffs would result in unnecessary financial burden on the public and duplicate funding.
After examining the issue, DERC exercised its regulatory powers to remove implementation difficulties and directed all Discoms to include the complete cost of upstream infrastructure in the demand notes issued to Charge Point Operators (CPOs) or the State Nodal Agency. This requirement applies to all EV Public Charging Stations (EV PCS), Battery Swapping Stations (BSS), and Battery Charging Stations (BCS) established under the PM E-DRIVE Scheme.
The infrastructure costs to be included in the demand notes cover various electrical and civil works. These include distribution transformers, high-tension and low-tension cables, circuit breakers, AC distribution boxes, fencing, and other related equipment. The cost estimates will be prepared according to the DERC-approved Cost Data Book.
The Commission has also made it clear that these infrastructure costs must not be recovered from general electricity consumers under any circumstances. To ensure compliance, Discoms have been instructed to maintain separate accounts and records for all work carried out under the PM E-DRIVE Scheme.
The order also assigns monitoring responsibilities to Delhi Transco Limited. DTL will maintain a consolidated record of all approved charging locations, demand notes issued by Discoms, and payments received. It will also submit quarterly progress reports to DERC for review. Signed by DERC members Surender Babbar and R.N. Singh, the order will remain effective throughout the duration of the PM E-DRIVE Scheme and any future successor schemes, while supporting the expansion of EV charging infrastructure without increasing the financial burden on Delhi’s electricity consumers.
