The Delhi Electricity Regulatory Commission (DERC) has issued the Delhi Electricity Supply Code and Performance Standards (Removal of Difficulty) Fourth Order, 2026, to facilitate the implementation of electric vehicle (EV) charging infrastructure under the Government of India’s PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.
The Order, issued under Regulation 85 of the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017, addresses difficulties related to the raising of demand notes for EV Public Charging Stations (EV PCS), Battery Swapping Stations (BSS), and Battery Charging Stations (BCS).
Under the existing Regulations, distribution licensees (DISCOMs) are required to establish the required infrastructure including energization of EV charging connections on receipt of payment from applicants against demand notes. However, the Commission noted that the PM E-DRIVE Scheme provides financial assistance for upstream infrastructure including distribution transformers, LT and HT cables, AC distribution boxes, circuit breakers, isolators, protection equipment, mounting structures, fencing and associated civil works.
The Government of India notified the PM E-DRIVE Scheme vide Gazette Notification S.O. 4259(E) dated September 29, 2024. Subsequently, the Power Department, Government of NCT of Delhi, in its letter dated November 24, 2025, designated Delhi Transco Limited (DTL) as the State Nodal Agency (SNA) for development of EV charging infrastructure across Delhi through Charge Point Operators (CPOs).
The Commission noted that under the existing demand note provisions for LT connections up to 200 kW sanctioned load, only Service Line-cum-Development (SLD) charges, Security Deposit and Road Restoration (RR) charges are recovered from the applicants. The costs of the remaining upstream infrastructure are absorbed through the Aggregate Revenue Requirement (ARR) of respective distribution licensees and ultimately recovered from electricity consumers through tariffs.
On the basis of representations filed by Delhi Transco Limited on 20th May, 2026, the Commission observed that if the existing demand note mechanism for PM E-DRIVE projects is continued, it would result in the non-recovery of the entire upstream infrastructure costs eligible for subsidy under the Scheme, which would otherwise be incorporated in the ARR and be charged to the electricity consumers in Delhi.
In this regard, the Commission has directed that notwithstanding Regulation 11(3)(ii) of the Principal Regulations, all distribution licensees shall raise demand notes for all PM E-DRIVE sites identified by the State Nodal Agency in favour of the respective Charge Point Operators (CPOs) or the State Nodal Agency. For LT connections up to 200 kW, the demand notes will include not only the existing SLD charges, Security Deposit, and Road Restoration charges but also the full cost of upstream infrastructure specified under the PM E-DRIVE Scheme. These costs will include distribution transformers, LT and HT cables, AC distribution boxes, circuit breakers, isolators and other protection equipment, tubular or PCC mounting structures, fencing, and associated civil works.
The Order further specifies that estimates for upstream infrastructure costs shall be prepared by the distribution licensees based on the Cost Data Book (CDB) approved by the Commission and prevailing on the date of preparation of the estimate.
To safeguard consumer interests, the Commission has clarified that all costs incurred under the PM E-DRIVE Scheme, including upstream infrastructure costs recovered through demand notes, shall not be included in the Annual Revenue Requirement (ARR) of the concerned distribution licensees. These costs will therefore not be passed on to electricity consumers in Delhi through electricity tariffs. Distribution licensees have also been directed to maintain separate accounts and records for all works executed under the Scheme and the corresponding payments received from Charge Point Operators or the State Nodal Agency.
For monitoring and implementation, Delhi Transco Limited, as the State Nodal Agency, will maintain consolidated records of PM E-DRIVE project sites, demand notes raised by distribution licensees, and payments received against those demand notes. DTL will also submit quarterly progress reports to the Commission in the format specified from time to time.
The Commission has retained the authority to issue additional directions or clarifications to ensure the smooth implementation of the Order.
The Delhi Electricity Supply Code and Performance Standards (Removal of Difficulty) Fourth Order, 2026 was introduced on 1st July, 2026 and shall continue to remain in force for the entire period of the PM E-DRIVE Scheme or any other scheme introduced by the Government of India for the same purpose, unless modified, withdrawn or superseded by subsequent orders of the Commission.
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