Power industry experts have hailed the new tariff regulations announced by the central electricity regulator for the period between 2019 and 2024, welcoming several new guidelines. They, however, also cautioned against the possibility of a marginal negative impact on generation projects with respect to new operating norms.
The new regulations are set to benefit state-owned utilities including largest generator NTPC Ltd and Powergrid Corporation (PGCIL) that transmits around a half of the country’s total electricity through its transmission network.
Return on Equity (RoE)
Under the new regulations, RoE will be computed at the base rate of 15.50 per cent for thermal generating station, transmission system including communication system and run-of-the-river hydro generating stations. For storage-type hydro stations, it will be computed at the base rate of 16.50 per cent. Read More