No, not indefinitely. The Supreme Court has ruled that electricity consumers cannot be made to bear depreciation costs for a power plant during any period it did not actually supply them electricity. On 7 May 2026, the Court restored a Delhi Electricity Regulatory Commission order restricting Tata Power Delhi Distribution Ltd's depreciation recovery for a 108 MW gas-based plant, originally built for the 2010 Commonwealth Games, to just the 6 years it actually supplied power to Delhi consumers.
What exactly happened in the TPDDL case?
The plant in question stopped supplying electricity to Delhi consumers after roughly 6 years of operation. TPDDL sought to continue recovering depreciation charges from consumers for a longer period through their tariffs. The Appellate Tribunal for Electricity (APTEL) had sided with TPDDL in 2025, but the Supreme Court set that order aside and restored DERC's original restriction, limiting recovery strictly to the period of actual supply.
What are 'fixed' or 'depreciation' charges on an electricity bill?
Beyond the per-unit charge for electricity you actually consume, your tariff includes components meant to let the distribution company recover its capital investment in generation and grid infrastructure over time. This ruling caps how long a company can keep billing consumers for that capital recovery once the specific plant behind it stops actually generating power for them.
Does this principle apply beyond this one case?
The Court's reasoning, that tariff recovery must stay linked to actual supply and consumer benefit, is a general principle, not a one-off exception carved out for TPDDL. It gives consumers, industrial and commercial users, and state regulators a clear standard to challenge similar fixed-charge billing for other idle or decommissioned plants.
How do I challenge a tariff charge I believe is unfair on this basis?
Raise a formal grievance with your State Electricity Regulatory Commission, which has jurisdiction over tariff structuring and disputes, or escalate through the distribution company's consumer grievance forum if it has not passed on relief that regulators have already ordered elsewhere. As an electricity consumer, you also have the general consumer forum route available: see our guide to the Consumer Protection Act, 2019 for jurisdiction limits and how to file. For significant commercial or industrial billing disputes, an advocate experienced in electricity regulatory law can assess whether your specific fixed-charge component is defensible under this standard.
Disclaimer: This article is for general information only and is not legal advice. Electricity tariff regulation varies by state and by your specific distribution company's tariff order; consult a qualified advocate.
Frequently asked questions
Can a power distribution company charge me for a plant that has stopped supplying electricity?
No, not indefinitely. The Supreme Court has ruled that consumers cannot be made to bear depreciation costs for a power plant for any period during which it did not actually supply electricity. Tariff recovery must stay linked to actual supply and consumer benefit.
What was the specific 2026 case about?
The Supreme Court restored a Delhi Electricity Regulatory Commission (DERC) order restricting Tata Power Delhi Distribution Ltd's (TPDDL) depreciation recovery for a 108 MW gas-based plant, built for the 2010 Commonwealth Games, to only the 6-year period during which it actually supplied electricity to Delhi consumers. The Court set aside a 2025 Appellate Tribunal for Electricity order that had favoured TPDDL's claim for a longer recovery period.
What is 'fixed charge' or 'depreciation charge' on an electricity bill?
These are components of your tariff meant to recover the distribution company's capital investment in generation and infrastructure over time, separate from the per-unit energy charge for electricity actually consumed. This ruling limits how long a company can recover those fixed costs from consumers once the underlying plant stops actually supplying power.
Does this apply to any inactive or idle plant, or only this specific case?
The principle the Court articulated, that tariff recovery must remain linked to actual supply and consumer benefit, applies as a general rule, not just to the specific TPDDL plant. It gives consumers and regulators a clear standard to challenge similar charges elsewhere.
How can a consumer challenge an unfair tariff charge?
Raise the issue with your State Electricity Regulatory Commission, which has jurisdiction over tariff disputes, or through a consumer grievance forum if the distribution company is not passing on regulatory relief already granted. Large commercial or industrial consumers facing significant fixed-charge disputes should consult an advocate experienced in electricity regulatory matters.