The Rajasthan Electricity Regulatory Commission has issued a new set of regulations titled “Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff), Regulations, 2025.” These rules will apply across the entire state of Rajasthan and are relevant for determining tariffs from the financial year 2025-26 to 2029-30. However, these regulations will not apply to captive power plants or renewable energy sources, except for small and micro hydropower projects.
The Commission outlines that all matters related to tariff determination for previous years, including the financial year 2024-25, will continue to be governed by earlier regulations issued in 2004, 2009, 2014, and 2019 along with their amendments. The new regulations will take effect from the date of publication in the official gazette.
A wide range of terms are defined in the regulations to ensure clarity. For instance, an “Accounting Statement” includes various financial records such as balance sheets, profit and loss statements, and cash flow statements prepared following the Companies Act, 2013, and Indian Accounting Standards. Another term, “Aggregate Revenue Requirement” refers to the total expenses and returns a licensee or generation company is entitled to recover through tariffs.
The term “Availability” refers to how much electricity a generating plant can produce under specific conditions, calculated based on installed capacity minus auxiliary consumption. Similarly, “Auxiliary Energy Consumption” refers to the amount of electricity used by equipment within the power plant itself, excluding electricity used for housing colonies or other non-operational purposes.
The regulation specifies the use of Standard Auxiliary Consumption norms for emission control equipment and defines the treatment of “Capital Expenditure” incurred after the commercial operation date, subject to approval by the Commission. It also provides definitions for terms like “Control Period” which spans five years starting April 1, 2025, and “Tariff Principles,” which must be followed during the control period.
Additionally, the regulations detail tariff determination procedures for different stakeholders including generation companies, transmission licensees, and distribution licensees. It includes how revenue requirements should be projected and how actual costs will be trued-up against projections. The commission also retains the authority to adopt tariffs determined through competitive bidding under Section 63 of the Electricity Act, 2003.
It includes rules related to sales and purchases of power between entities, interstate transmission and wheeling, and open access charges. Importantly, in situations where there is a shortage of power supply, the Commission can set minimum and maximum tariff limits for power sales between generation companies and distribution licensees.
The regulations define concepts such as the “Useful Life” of various infrastructure assets, which varies from 25 to 40 years depending on the type of asset, such as thermal power plants, hydro stations, or transmission lines. They also clarify how new and existing generation units are distinguished based on their commercial operation date.
Other technical terms like “Gross Calorific Value” and “Gross Station Heat Rate” are defined in detail for accurate calculation of fuel costs and efficiency. There is also a reference to emission control equipment and its associated auxiliary consumption, which is separately measured and not included in regular auxiliary consumption.
The Commission includes definitions for “Deemed Licensees,” “Transmission Losses,” “Retail Sale,” and other operational and regulatory terms. These help in standardizing the framework across the power sector in Rajasthan and ensure that all stakeholders—generation companies, transmission and distribution licensees, and consumers—are governed under a clear and transparent system for electricity tariff determination.
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