KERC Approves First Amendment to Multi-Year Transmission, Distribution, and Retail Supply Tariff Regulations 2024

The Karnataka Electricity Regulatory Commission (KERC) has amended its regulations related to multi-year transmission, distribution, and retail supply tariffs, 2024. Initially, the KERC had notified the Multi-Year Transmission, Distribution, and Retail Supply Tariff Regulations 2024 on June 24, 2024, and published them in the Karnataka Gazette on July 4, 2024. Following this, the Commission proposed an amendment to clauses 31.6 and 31.7 to allow more flexibility in setting the cost limits for transmission projects that must be executed through tariff-based competitive bidding.

The Commission used the powers granted under the relevant sections of the Electricity Act to draft the KERC Multi-Year Transmission, Distribution, and Retail Supply Tariff First Amendment Regulations, 2024. This draft was published in the Karnataka Gazette on November 4, 2024, inviting public comments and suggestions. However, no written comments were received from stakeholders, and there was no participation in the public hearing held on December 6, 2024. As a result, the Commission decided to proceed with the notification of the amendment without further changes.

On December 10, 2024, the Commission approved the KERC Multi-Year Transmission, Distribution, and Retail Supply Tariff First Amendment Regulations, 2024. These regulations will take effect from the date they are published in the Official Gazette. The amendment stipulates that inter-state transmission projects, costing above a certain threshold limit (to be prescribed by the Commission through future notifications), must be carried out through tariff-based competitive bidding. These projects must also comply with the guidelines set by the Ministry of Power, Government of India.

To oversee the process, an empowered committee will be formed by the Government of Karnataka, which will coordinate with the tariff-based competitive bidding process while ensuring adherence to the Ministry of Power’s guidelines.