When Delhi's electricity distribution was privatised in 2002, power was allocated and its cost set by the government. Power purchase costs were considered pass-throughs for the operations of the distribution utilities. However, with signifi cant changes in the electricity generation and trading business in the interim, Delhi's consumers are paying not only for the regulated guaranteed profi ts of the state-owned generation, the transmission companies and the private distribution companies, but also for the unregulated profi teering of the merchant producers and other market players.