West Bengal Electricity Regulatory Commission Proposes New Tariff Determination Regulations

Representational image. Credit: Canva

The West Bengal Electricity Regulatory Commission (WBERC) has put forth the WBERC (Modalities of Tariff Determination) Regulations, 2023, to ensure a fair and efficient pricing system for electricity consumers in the state. These regulations aim to establish a transparent and structured framework for the determination of tariffs in various sectors of the power industry.


The proposed regulations encompass several key provisions. For power generated from renewable energy sources that fall below the minimum capacity required for competitive bidding, the Commission may specify ceiling tariffs. Hydroelectric projects, including pumped storage projects, can have their tariffs determined under the regulated tariff mechanism (RTM) framework for long-term power purchase agreements (PPAs) with distribution licensees, subject to specific conditions.

Existing power-generating projects operating under the RTM framework will continue to be covered by this mechanism. Tariffs for these projects will be determined for the remaining PPA period or the project’s lifespan, whichever is earlier, under Section 62 of the Electricity Act.

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Expansion of state-owned and controlled power-generating projects will be permitted under Section 62, with tariffs determined based on the norms specified in the regulations. Private developers undertaking capacity expansions can have their tariffs determined through the RTM framework, with benefits passed on to consumers.

Transmission tariffs will be established based on an annual updated five-year transmission system plan prepared by the state transmission utility (STU). Intra-state transmission projects will align with the approved state transmission plan, and projects above a certain value will be implemented through tariff-based competitive bidding (TBCB). Other intra-state transmission projects not covered under the TBCB framework will be determined under the RTM mechanism.

The determination of retail tariffs for consumers will follow the provisions of the Electricity Act 2003 and the tariff regulations. The WBERC holds the authority to relax or amend any provisions of these regulations as needed and can issue directions to address implementation challenges.

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Stakeholders are invited to submit their suggestions and comments on the proposed regulations until July 12, 2023.

View the official document here:

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