CERC's tariff regulations: In tandem with electricity sector's trends

Every five years, Central Electricity Regulatory Commission (CERC) comes out with tariff regulations which determine the structure of the cost of generating and transmitting power. Apart from this, these regulations are indicative of prevalent practices, ongoing trends and future course of action for the electricity sector.

The CERC announced the regulations for the 2019-2014 this week. Coal based generation is facing fuel supply issues and deadline of phasing old units. The rampantly growing renewable is struggling with transmission niggles. Lack of a balancing source such as hydro power could potentially harm the grid. At such a juncture, the tariff regulations have