MSERC Notifies MYT Regulations 2026 For Meghalaya’s Power Sector

The Meghalaya State Electricity Regulatory Commission (MSERC) has notified the Multi Year Tariff (MYT) Regulations, 2026, introducing a new regulatory framework for electricity tariff determination in Meghalaya. The regulations, issued on July 31, 2026, will replace the existing MYT Regulations, 2014, and will apply for a five-year control period from April 1, 2027, to March 31, 2032.

The new framework covers the entire electricity value chain, including generation, transmission, distribution, and the State Load Despatch Centre (SLDC). It will apply to existing and future power sector entities operating in the state, including Meghalaya Power Generation Corporation Limited (MePGCL), Meghalaya Power Transmission Corporation Limited (MePTCL), and Meghalaya Power Distribution Corporation Limited (MePDCL).

The regulations were finalized after an extensive consultation process involving public notices, stakeholder feedback, and a hybrid public hearing conducted on July 8, 2026. The hearing included representatives from state utilities as well as industrial stakeholders such as the Byrnihat Industries Association.

Under the new framework, power sector entities will be required to prepare and submit a detailed five-year Business Plan. The plan will cover category-wise electricity demand projections, power procurement requirements, transmission and distribution loss reduction targets, capital expenditure plans, and financing arrangements. The plan will have to be submitted three months before the filing of the true-up petition for the preceding year.

MSERC will establish baseline operational and cost parameters using historical audited financial accounts, Central Electricity Authority benchmarks, and prudence checks. Utilities will also have to maintain separate audited accounts or clearly defined allocation statements for different business segments to improve financial transparency.

For new power projects commissioned from April 1, 2027, the regulations prescribe a normative debt-to-equity ratio of 70:30. Any equity contribution exceeding 30 percent will be considered as a normative loan for tariff purposes. Grants will not be included in the capital structure for calculating interest and returns. Utilities will also be required to geo-tag capitalized assets and maintain updated fixed asset registers.

The regulations introduce an annual truing-up mechanism to assess actual performance against approved projections. Variations will be classified as controllable or uncontrollable. Controllable factors include plant availability, operation and maintenance costs, distribution losses, and collection efficiency.

Under the benefit-sharing mechanism, two-thirds of financial gains achieved through controllable efficiency improvements will be passed on to consumers through tariff rebates, while utilities will retain one-third of the benefit. Uncontrollable factors, including force majeure events, changes in law, statutory taxes, and fuel price variations, will be adjusted directly through tariffs.

Annual tariff petitions must be filed by November 30 each year. Following stakeholder consultation and public hearings, MSERC will issue the final tariff order within 120 days. The 2026 regulations are expected to strengthen financial discipline, improve transparency, encourage efficiency, and provide greater predictability in tariff determination across Meghalaya’s power sector.