Power regulator CERC today unveiled new norms for inter-state transmission of power, based on the distance and direction of electricity, which would result in lowering of tariffs in the long term.
These regulations will implement the point of connection method of sharing the cost of inter-state transmission services in India, a CERC statement said. Earlier, states were charged a uniform fee for the transmission of power from one state to another in the form of postage stamps, irrespective of the distance.
With the new regulations in place, states will now pay for point-to-point transmission of electricity, a senior CERC official told PTI.
"This move will definitely impact the power tariffs... they would go down in the long run," he said.
The new mechanism will benefit transmission network development and users of the transmission system, the statement said, adding that it would facilitate integration of electricity markets and enhance open access and competition.