'New tariff policy can override CERC order'

N K Singh, member of the Planning Commission and chairman of the task force on power sector investment and reforms, told Business Standard that the Electricity Act, passed in June 2003, allowed the government a year's time to announce a new tariff policy.

"The government can notify its tariff policy by June 30, 2004. It is only reasonable that since the work of the government cannot come to a standstill, the Central Electricity Regulatory Commission has issued a tariff order today," he said. Singh also said today's order was not inconsistent with the recommendations made by the task force headed by him.

He said the regulator's order would have to conform to the provisions of the Electricity Act, 2003, under which the government had the final authority to decide on policy.

Government officials said if the Centre came out with a tariff policy by June 30, it would override today's order.