Power ministry directs regulator to pass on changes in duties to consumer tariffs


Power ministry directs regulator to pass on changes in duties to consumer tariffs

In a rare move, the government has issued a direction to power regulator Central Electricity Regulatory Commission (CERC) to allow changes in any central or state government duties to be passed in electricity tariffs to consumers post bidding.

The industry welcomed the government’s move and said it will expedite procedures, helping a big chunk of power projects stuck due to such regulatory issues.

Association of Power Producers director general Ashok Khurana said, “APP welcomes the directions issued by power ministry today. This will expedite the cases relating to pass-through of additional cost due to change in law events, and help in early resolution of regulatory dues of about Rs 18,000 crore.

On an average, the necessary orders for Change in Law pass-through took 3-4 years.” He also said adding this will also lead to reduced litigations. Read More

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