The Centre could remove the provision of regulatory assets from the tariff orders passed by State Electricity Regulatory Commissions (SERCs) for distribution companies (discoms). The amendment will be introduced in the next National Tariff Policy.
The move is aimed at improving discoms’ income and also to halt populist measures SERCs take to keep power tariffs low. Regulatory assets are discom expenses that are recoverable in future power tariff hikes but SERCs do not take them into consideration while calculating current electricity tariffs. According to an estimate ...
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