Expect lower electricity bills as power tariffs fall: Report


Expect lower electricity bills as power tariffs fall: Report

Power tariffs are expected to fall by 3-5 paise per unit as the working capital requirement of generation companies (gencos) has fallen due to advance payments for electricity by distribution companies (discoms), The Hindu BusinessLine reported.

As per officials, gencos save Rs 4,000 crore in working capital requirement and the Power Ministry wrote to the Central and State electricity regulators to reduce the fixed-cost component and pass on the benefit to customers as reduced tariff, the paper said.

Moneycontrol could not independently verify the report.

The reduction is to be based on whether the gencos receive a full or partial advance payment, the letter to the Appropriate Commission (State or Central) adds. Read More

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