A sharp escalation in Delhi’s long-running power sector dispute has set the stage for higher electricity bills, with millions of consumers likely to face added financial strain in the coming months.The Appellate Tribunal for Electricity (APTEL) has ordered the recovery of over Rs 38,552 crore in pending dues within three weeks, while censuring the Delhi Electricity Regulatory Commission (DERC) for delays that, it said, were unjustified.The direction came on Monday when a bench, led by acting chairperson Seema Gupta and judicial member Virender Bhat, dismissed the DERC’s plea seeking more time to initiate the recovery process. At the centre of the dispute is a regulatory asset of approximately Rs 38,552 crore, accumulated from 2014 by Delhi’s three power distribution companies.The DERC had sought an extension to begin recovery, but the tribunal refused, also rejecting a demand for a detailed audit by the Comptroller and Auditor General (CAG) of India.The Rs 38,552-crore dues include Rs 19,174 crore for BSES Rajdhani Power Limited (BRPL), Rs 12,333 crore for BSES Yamuna Power Limited (BYPL) and Rs 7,046 crore for Tata Power Delhi Distribution Limited (TPDDL). These are approved costs incurred in supplying electricity. This will lead to tariff increase for Delhi residents in coming days.Delhi’s power minister Ashish Sood, in a conversation with The Tribune, blamed previous governments, saying, “Despite discoms receiving continuous subsidies from govt, their RAs simultaneously increased. This points to clear collusion and financial mismanagement by the AAP government. Therefore, CAG audit of power discoms is needed.”The development follows earlier directions issued by the Supreme Court of India in August 2025, which mandated that state regulators begin clearing such dues from April 2024 and complete the process by April 2028. The court had made it clear that tariff revisions could be used as a mechanism to recover these pending amounts.In Delhi, electricity tariffs had been kept relatively low in recent years under DERC’s regulatory approach. However, this meant that distribution companies were unable to recover the full cost of procuring and supplying power. Over time, the gap widened, resulting in a substantial accumulation of unpaid dues now crossing Rs 38,000 crore.With the tribunal now enforcing a strict timeline, the recovery process is expected to translate into higher tariffs for consumers.Our source from one of the discom said tariff hikes remain the only viable route to address the crisis. “The tribunal has directed that recovery begin within three weeks. The Rs 38,552 crore accumulated over the past two decades will now be recovered through tariffs as per Supreme Court orders,” he said.In its ruling, APTEL observed that DERC had been delaying the process despite having no legal impediment to begin recovery. “The commission is delaying recovery on one pretext or another, leading to a continuous increase in interest and outstanding dues. This burden will ultimately fall on consumers,” the tribunal noted.The tribunal also addressed the demand for a CAG audit of private distribution companies, stating that such an exercise requires a clear demonstration of public interest, which it found lacking in this case. It further raised concerns over the conduct of the Delhi Lieutenant Governor’s office, pointing to lapses in the manner audit approvals were granted.With temperatures rising earlier than usual, the city’s peak power demand is likely to cross the 9,000-mw mark for the first time this summer, said a discom official. Last year, it touched 8,442mw.As the recovery process is set in motion under judicial and regulatory pressure, the immediate impact is expected to be felt at the consumer level, with electricity bills in the Capital poised to rise after years of relative stability.