It was an integrated utility with generation, transmission and distribution functions serving all of Delhi except the NDMC and MES (Cantoment) areas to which it supplied power in bulk.
Delhi Electricity Board Regulatory Commission (DERC) was constituted in May 1999 whose prime responsibility was to look into the entire gamut of existing activity and search for various ways of power sector reforms.
It mainly provides for the constitution of an Electricity Regulatory Commission, unbundling of DVB into separate generation, transmission and distribution companies and increasing avenues for participation of private sector.
This was followed with a Tripartite Agreement which was signed by the government of Delhi, DVB employees to ensure the cooperation of stakeholders in this reform process.
The bidders were selected on the basis of reduction of total Aggregate Technical and Commercial of losses (AT & C) a unique feature of the power sector reforms in Delhi.