+
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
Real Estate

DLF Returns to Mumbai with Premium Andheri Residential Project

Delhi-NCR based real estate major DLF announced its return to the Mumbai market on 17 July with the launch of its premium residential project, The WestPark, in Andheri. The first phase includes 416 apartments spread across four towers, with two towers launched on the announcement day. The company plans to invest over Rs 8 billion in the project and expects a topline exceeding Rs 20 billion from Phase 1.“We have launched two towers and, given the strong response, plan to unveil the remaining two towers ahead of schedule, within the next few days,” said Aakash Ohri, Joint Managing Director o..

Next Story
Infrastructure Urban

APCRDA Advances Net Zero Goal with IGBC Training for Officials

In a significant stride towards Andhra Pradesh’s Net Zero target by 2040 and the Swarna Andhra 2047 vision, the Andhra Pradesh Capital Region Development Authority (APCRDA), in partnership with the Indian Green Building Council (IGBC), conducted a high-level capacity-building programme for senior officials in Vijayawada on Friday.Held at a city hotel, the session saw the participation of over 50 senior APCRDA officials, including the Engineer-in-Chief, Chief Engineer (H&B), Director (Planning), Director (Environment), and heads of key departments. The training centred on IGBC’s Green B..

Next Story
Infrastructure Energy

Assam Solar Project Halted as Waaree EPC Contract Is Cancelled

Following the Assam government’s withdrawal from its proposed solar project, the Engineering, Procurement, and Construction (EPC) contract awarded to Waaree Renewable has been suspended. Waaree Group’s EPC division informed the stock exchange of this development through a regulatory filing.The Assam solar project was suspended due to funding challenges, which rendered the initiative unviable for the state government. Waaree Renewable Transmission Limited (RTL) explained that the Government of Assam has withdrawn the project’s funding via the Asian Development Bank (ADB) loan. Consequentl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?