The Central Electricity Regulatory Commission has issued an approach paper on terms and conditions of tariff regulations for the tariff period — April 1, 2024 to March 31, 2029.
The Central Electricity Regulatory Commission (CERC) has been entrusted with the authority to determine tariffs and establish regulations. According to the Electricity Act 2003, the Commission is responsible for regulating the tariffs of generating companies owned or controlled by the Central Government, as well as those of generating companies with composite schemes for electricity generation and sales in multiple states. Additionally, the Commission regulates inter-state transmission of electricity and determines tariffs for such transmission.
The current tariff period is set to conclude on March 31, 2024. In preparation for the next control period, the Commission has initiated the process of defining the terms and conditions for the new tariff. The aim is to support investors in the power sector while safeguarding consumer interests. Given the changing landscape of the sector, including the increased presence of renewable energy, and the evolving financial scenario, it is necessary to reassess the assumptions and factors considered while framing the tariff terms and conditions. To facilitate this, the Commission has prepared a consultation document seeking the opinions and views of stakeholders, industry players, and the general public on various aspects of tariff determination.
The Commission emphasizes that the content of the consultation document does not reflect its official stance or that of its Chairperson or individual Members. Stakeholders and interested parties are invited to provide their comments and suggestions on the Approach Paper, including any additional issues related to tariff terms and conditions, by July 15, 2023.
