Regulatory assets provision to be removed in next power tariff policy

The Ministry of Power recently blamed the SERCs for not ordering regular tariff revision

The Centre is set to introduce a unique amendment in the upcoming National Tariff Policy. This is expected to improve the income of discoms and prevent states from taking populist measures of low electricity tariff. 

The Ministry of Power could remove the provision of regulatory assets from power tariff orders passed by State Electricity Regulatory Commissions (SERCs) for discoms.

Regulatory assets are discom expenses that are recoverable in power tariff hikes but SERCs do not take them into consideration while calculating electricity tariffs.  According to an estimate by the ministry of power, discoms lose Rs 22,000 crore annually due to the creation