The Gujarat Electricity Regulatory Commission (GERC) has invited proposals from experienced consultancy firms to help redesign the state’s retail electricity tariff structure. Through a Request for Proposal (RFP), the Commission aims to develop a simpler, more transparent, and future-ready tariff framework that reflects changing energy technologies, consumer requirements, and economic conditions.
The proposed study is intended to make electricity tariffs easier for consumers to understand while ensuring that pricing accurately reflects the actual cost of supplying electricity. GERC also wants to create a tariff system that remains financially sustainable for power distribution companies and supports the long-term growth of Gujarat’s power sector.
As part of the project, the selected consultancy firm will carry out a comprehensive technical and financial assessment of the existing tariff framework. One of the key areas of focus will be the redesign of Time-of-Day (ToD) tariffs. The consultant will evaluate how electricity prices can vary depending on seasonal demand, peak and off-peak consumption hours, and the increasing share of renewable energy in the power mix. The objective is to encourage efficient electricity usage while improving grid management.
Another major component of the study will involve conducting a detailed cost of supply analysis. The consultant will develop methodologies to calculate the actual cost of delivering electricity across different voltage levels and consumer categories. This exercise is expected to help create a fairer tariff structure based on the true cost of service.
The project will also examine pricing mechanisms for emerging energy technologies. GERC plans to introduce suitable tariff models for electric vehicle charging infrastructure, battery energy storage systems, green hydrogen projects, and prosumers who both generate and consume electricity. These new categories are becoming increasingly important as the energy transition accelerates.
To ensure the proposed reforms follow global best practices, the consultancy firm will benchmark Gujarat’s existing retail tariff system against successful models adopted by leading Indian states as well as international electricity markets. The study will use advanced financial modelling, simulation tools, and AI-assisted data analytics to evaluate different tariff scenarios and measure their impact on consumers, utilities, and the overall power sector.
The consultancy assignment has been planned as a nine-month project with defined milestones. Payments to the selected consultant will be linked to the successful completion of various deliverables, including benchmarking reports, cost of supply studies, tariff design recommendations, and a final integrated tariff simulation model.
GERC has specified detailed eligibility criteria for participating firms. Interested bidders must have at least 10 years of consulting experience, particularly in power sector regulations or tariff studies. They should have completed a minimum of five similar assignments for electricity regulatory commissions or power distribution companies. The firms must also employ at least 100 full-time professionals in India, including 40 specialists working in the infrastructure or power sector. Additionally, bidders must demonstrate financial stability with a positive net worth and an annual turnover of at least ₹10 crore during the last three audited financial years.
Interested consultancy firms are required to submit separate sealed technical and financial bids at the GERC office in GIFT City, Gandhinagar. The deadline for submission is August 3, 2026, at 6:00 PM IST. The proposed reform is expected to strengthen Gujarat’s electricity pricing framework by balancing consumer interests, promoting emerging clean energy technologies, and ensuring the long-term financial viability of the state’s power distribution sector.
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