The National Democratic Alliance government has proposed to rationalize electricity tariff categories, simplify slabs and make them more competitive for businesses in a push to its Make in India drive.
The government seeks to do away with consumer categories such as commercial, domestic, agricultural, industrial and institutional, according to the draft amendments in the tariff policy, which is available on the power ministry’s website. Effectively, all consumer categories will have to pay the same tariff for the same volume of electricity consumed, if they have the same load and voltage.
“In order to have a simplified tariff structure across all discoms, the tariff structure should do away with the concept of having different tariff for usage by different categories of customers. The principle adopted is paying a price for use of electricity as a commodity which should not be different for different category of usage like in domestic/commercial/industrial etc but it should be based on load used and energy consumed,” stated the draft. Read more