CERC has issued a consultation paper on terms and conditions of tariff regulations for the control period from April 1, 2019 to March 31, 2024. CERC has proposed to introduce a ‘three-part tariff’ structure to replace the existing ‘two-part tariff’ structure. The proposed design seeks to introduce a “variable component” in addition to the fixed and energy charges, which will provide an incremental return above guaranteed return and balance operation and maintenance expenses. The variable component could be linked to the difference between availability and dispatch of electricity. In addition, CERC has proposed a new formula for payment made by discoms to the gencos, which will be based on energy supplied to discoms rather than only plant availability. The consultation paper also outlines the other regulatory reforms. CERC has invited comments/suggestions on the same from the stakeholders by July 15, 2018.
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