Govt urges electricity regulators to issue tariff orders on time
POWER & RENEWABLE ENERGY

Govt urges electricity regulators to issue tariff orders on time

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

Next Story
Infrastructure Urban

Adani Road to Acquire D P Jain TOT Toll Roads for Rs 13.42B

Adani Road Transport Limited (ARTL), a wholly owned subsidiary of Adani Enterprises, has executed a Share Purchase Agreement (SPA) on 11 September 2025 to acquire a 100 per cent stake in D P Jain TOT Toll Roads Private Limited (DPJTOT). The acquisition, valued at an enterprise value not exceeding Rs 13.42 billion, is subject to regulatory approvals and customary conditions.Under the agreement, ARTL will acquire the stake from D P Jain TOT Toll Roads Pvt. Ltd (DPJTOT), D P Jain & Co Infrastructure Pvt. Ltd., and DPJ-DRA Tollways Pvt. Ltd.The transaction details have been disclosed pursuant ..

Next Story
Infrastructure Urban

All-Women Team Commissions 100-Tonne Dump Truck at Tata Steel

In a record-setting development in India’s mining and construction equipment sector, an all-women team from Larsen & Toubro’s Construction & Mining Machinery business (L&T CMB) has commissioned a 100-tonne dump truck at Tata Steel’s Noamundi iron ore mine in Jharkhand.This marks the first instance in India where a machine of such scale and complexity has been assembled, tested and commissioned entirely by women technicians. The milestone reflects L&T’s commitment to fostering gender inclusivity and empowering women in traditionally male-dominated industries.The Komatsu ..

Next Story
Infrastructure Transport

Kochi Metro Pauses Work for Rs 50 Million Pipeline Shift

Kochi Metro Rail Limited (KMRL) will pause its piling works in the Padamugal and Vazhakkala regions for ten days to allow the Kerala Water Authority (KWA) to complete its pipeline relocation work.The decision follows frequent pipe bursts in the area and disruptions to water supply in Thrikkakara municipality.During this period, the KWA will carry out pipeline relocation from Kunnumpuram to Kumaranasan Road. KMRL will resume piling work only after the pipeline has been relocated and tested.The decision was made during a meeting between KMRL and KWA to address the recurring pipe burst issues in ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?