Govt urges electricity regulators to issue tariff orders on time

05 May 2021 CW Team

The Ministry of Power (MoP) has published a notification and asked the State Electricity Regulatory Commissions (SERCs) to issue tariff orders adhering to the provisions of the Electricity Act, 2003.

The ministry has strictly urged SERCs to comply with the regulations of the Appellate Tribunal for Electricity (APTEL) and issue tariff orders for FY2020-2021 at the earliest.

These steps were necessary to ensure the financial health of the electricity distribution companies (discoms), said the ministry. Further, the ministry ordered the states to update the tariff order status.

The MoP recorded that some of the SERCs are issuing tariff orders timely every fiscal year. Further, the ministry added that some of the other SERCs are not strictly adhering to the guidelines of the Electricity Act 2003 for timely issuance of the tariff orders.

APTEL had issued supervision to the state commissions for ensuring regular and timely updates of tariffs. Revision of tariffs includes truing up of tariffs, non-creation of fresh regulatory assets, allowing carrying cost of the past regulatory assets, and a mechanism for fuel and power purchase cost agreement to be put in place. Earlier, an order for tariff revision was issued in 2011 by APTEL.

In response to the 2011 order, APTEL ordered the state and joint electricity regulatory commissions to describe the delay in tariff update.

In 2019, APTEL asked the state and joint electricity regulatory commissions to explain the lack of payments to the DISCOMs, and gaps in income over the last three financial years.

The stability and growth of the power distribution companies were major factors for the sustainability of the entire power sector. The latest announcement said that power distribution is an important component of the whole electricity value chain. Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Odisha, Mizoram and Sikkim issued the tariff orders for FY2020-2021. In April this year, Manipur and Puducherry issued the tariff orders, as per a notification.

The MoP drafted a proposal for the amendment of the Electricity Act 2003. The ministry said that the tariff fixed by state distribution companies is not reflecting the actual cost.

The amendments insist that tariffs should reflect the exact cost of the supply of electricity and cross-subsidies and to reduce surtaxes imposed on industrial consumers.

Image Source

Also read: Power ministry asks regulators to revise tariffs by April 1 each year

The Ministry of Power (MoP) has published a notification and asked the State Electricity Regulatory Commissions (SERCs) to issue tariff orders adhering to the provisions of the Electricity Act, 2003. The ministry has strictly urged SERCs to comply with the regulations of the Appellate Tribunal for Electricity (APTEL) and issue tariff orders for FY2020-2021 at the earliest. These steps were necessary to ensure the financial health of the electricity distribution companies (discoms), said the ministry. Further, the ministry ordered the states to update the tariff order status. The MoP recorded that some of the SERCs are issuing tariff orders timely every fiscal year. Further, the ministry added that some of the other SERCs are not strictly adhering to the guidelines of the Electricity Act 2003 for timely issuance of the tariff orders. APTEL had issued supervision to the state commissions for ensuring regular and timely updates of tariffs. Revision of tariffs includes truing up of tariffs, non-creation of fresh regulatory assets, allowing carrying cost of the past regulatory assets, and a mechanism for fuel and power purchase cost agreement to be put in place. Earlier, an order for tariff revision was issued in 2011 by APTEL. In response to the 2011 order, APTEL ordered the state and joint electricity regulatory commissions to describe the delay in tariff update. In 2019, APTEL asked the state and joint electricity regulatory commissions to explain the lack of payments to the DISCOMs, and gaps in income over the last three financial years. The stability and growth of the power distribution companies were major factors for the sustainability of the entire power sector. The latest announcement said that power distribution is an important component of the whole electricity value chain. Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Odisha, Mizoram and Sikkim issued the tariff orders for FY2020-2021. In April this year, Manipur and Puducherry issued the tariff orders, as per a notification. The MoP drafted a proposal for the amendment of the Electricity Act 2003. The ministry said that the tariff fixed by state distribution companies is not reflecting the actual cost. The amendments insist that tariffs should reflect the exact cost of the supply of electricity and cross-subsidies and to reduce surtaxes imposed on industrial consumers. Image SourceAlso read: Power ministry asks regulators to revise tariffs by April 1 each year

Real Estate

11 May 2026

Danube Launches Greenz Villa Community in Dubai

Danube Properties has launched Greenz by Danube, a fully furnished master villa community in Dubai, unveiled by H.E. Sheikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Tolerance and Coexistence, at an event attended by over 7,000 investors and business leaders.Located near Dubai International Academic City and Dubai Silicon Oasis, the development marks Danube’s first large-scale integrated villa community and is positioned within one of Dubai’s emerging residential corridors.The project will comprise three and four-bedroom townhouses along with five-bedroom semi-detached and twin villas...

Equipment

11 May 2026

ABB Launches IE6 Motor for Hazardous Industrial Areas

ABB has introduced what it claims is the world’s first IE6 Hyper-Efficiency motor certified for hazardous industrial environments under ATEX and IECEx standards.The new Increased Safety motor is based on ABB’s synchronous reluctance (SynRM) technology and is designed without magnets or rare earth materials. According to the company, the motor reduces energy losses by up to 60 per cent compared to standard IE3 induction motors commonly used in hazardous areas.The motor is intended for use in industries such as chemicals, marine, oil and gas, pharmaceuticals and food and beverage, where expl..

Real Estate

11 May 2026

Casagrand Launches 41-Acre Highcity Project in Chennai

Casagrand has launched Casagrand Highcity, a 41-acre integrated residential development on Chennai’s Outer Ring Road (ORR), marking the company’s largest residential project to date.The project will comprise over 4,000 two and three BHK apartments across four G+22 towers and is positioned as one of the largest organised residential developments in the ORR corridor.Located along Chennai’s emerging residential and infrastructure growth belt, the project benefits from connectivity to IT hubs including Navalur, Siruseri SIPCOT and Porur, as well as industrial clusters such as Sriperumbudur, ..