Issue tariff orders at the earliest, Power Ministry directs states

In a significant development, the Ministry of Power has asked the state governments, UTs and state electricity regulatory commissions (SERCs) to issue the electricity tariff orders for the financial year 2021-22 at the earliest to ensure the financial health of distribution companies. The ministry has also asked the SERCs to strictly adhere with the directions issued by the Appellate Tribunal for Electricity (APTEL) on regular and timely revision of tariff, including regular truing up of tariffs. The APTEL also ordered to put in place a mechanism for fuel and power purchase cost adjustment.

According to the ministry, this is important as distribution sector is a crucial element of electricity value chain. Sustainability of entire power sector is critically dependent on sustainability and growth of the sector.

Joint Secretary Ghanashyam Prasad, who signed the letter to state governments, UTs and SERCs, said some SERCs are issuing tariff orders regularly in every financial year while some others are not adhering to the provisions of the Electricity Act, 2003 for timely issuing of the tariff orders.

"As per the information available with the ministry, some of the SERCs have not yet issued the tariff orders for FY 2021-22, thereby not adhering to the provisions of the Electricity Act, 2003 and directions of the APTEL,’’ said Prasad.

So far, Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Maharashtra, Meghalaya, Odisha, Himachal Pradesh, Kerala, Goa, Mizoram, Sikkim, Chandigarh, Dadra & Nagar Haveli, Daman & Diu and Lakshadweep have issued tariff orders till March 2021. Manipur and Puducherry have issued tariff orders in April 2021.

Prasad has asked the state governments & UTs to submit status report at the earliest on tariff orders for 2021-22 by SERCs.