Forum of Regulators (FOR), an apex body of the country’s power regulators, has sought the power ministry’s help in implementing model tariff regulations. In his recent communication to power secretary P Uma Shankar, FOR chairman Pramod Deo, also head of the Central Electricity Regulatory Commission (CERC), said the implementation of these regulations would go a long way in resolving issues related to viability of distribution companies.
According to the regulations, licensees need to file tariff petition by November 30 every year. The State Electricity Regulatory Commission (SERCs) would issue a tariff order within 120 days of seeking clarification and receiving response from the licensee. Moreover, they would issue suo motu tariff order in case of delay or non submission of tariff application or non receipt of additional information. FOR believes the model tariff regulations are expected to address issues related to timeliness of tariff determination process, disallowance of legitimate costs, fuel purchase adjustment and untreated gap and regulatory assets.
Deo said, “The model regulations squarely address issues such as the process of tariff fixation at the distribution level. This, when implemented, would go a long way in resolving the critical issue of viability of the distribution companies, which is central to sustained development of the sector and in the larger interest of consumers in term of ensuing quality of supply of electricity.” He however, reminded that FOR was a recommendatory body and its initiative to evolve model tariff regulations could bring the desired results if only they were implemented by the SERCs.
Deo called upon the power secretary to take up this issue with the state governments and SERCs, asking them to take necessary steps to implement model tariff regulations.
