In an effort to ensure financial discipline with the state electricity distribution companies (discoms), the National Demoratic Alliance (NDA) at the Centre wants state power regulators to ensure regular electricity tariff revision and put an end to the practice of creating the so called regulatory assets.
This comes in the backdrop of the ongoing crisis in discoms due to their poor financial health, which has led to delayed payment to generation utilities.
A regulatory asset is created when the regulator accepts certain expenditures but does not factor them in while determining present tariff. These expenditures are to be adjusted in future tariff and, in the interim, are accounted for as regulatory assets.
As part of the Centre’s stand, the union power secretary Ajay Kumar Bhalla has written to the Appellate Tribunal for Electricity (Aptel) chairperson Justice Manjula Chellur requesting the enforcement of its previous order of November 2011. Read More
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