PowerMin to circulate Cabinet note on Tariff Policy this week

Power Ministry will this week circulate a Cabinet note proposing amendments to the Tariff Policy, which was in incorporated in 2006 mainly with a purpose of giving importance to competition and creating conditions for competition in the sector.
"Cabinet note (on Tariff Policy) will be circulated this week," a Power Ministry official told PTI.
After receiving responses from other concerned ministries, Power Ministry will send the final note to the Cabinet for its approval.
According to sources, as part of the amendment to the Tariff Policy, the ministry has sought extension of Section 62 - under which electricity regulatory commissions have been empowered to determine tariffs - beyond the financial year 2017 and keep the hydro projects under this section, enabling the continuation of the cost plus tariff structure.

Another suggestion is to have a formula which would ensure that variation in fuel and power purchase cost is recovered by the power generating firms.
The earlier amendment to the Tariff Policy was approved in 2011.

The stakeholders, which have submitted their feedback on the same, include Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), principal secretaries of all the state governments and chairpersons of power generation, transmission and distribution utilities.
On asked about another Cabinet note on Amendment to the Electricity Act 2003, the official said, "That note will take some time, may be by the end of the month."

Power Minister Jyotiraditya Scindia had last year said that these two proposals are likely to be finalised by the end of this fiscal.