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    Govt. proposes uniform power tariff structure for all States

    uniform power tariff structure

    The government of India has proposed to revise the Electricity Act, 2003. The amendments and modifications included in the revised proposal aims to create a uniform power tariff structure by simplify tariff categories rationalising retail tariffs.

    Power demand is on the rise in India. More so now, with the added impetus to electrification infrastructure. However, the existing Electricity Act and the Tariff Policy are not suited, as is, to the evolving energy market. The existing framework broadly classifies energy consumers as domestic, industrial, institutional, agricultural and commercial. Due to this, individuals are unable to enjoy benefits if their consumptions are lesser. 

    With the proposed amendments and modifications like: uniform tariff structure across all states and consumer categories, a costing system that bills for units used/consumed, establishing an environment which involves state electricity regulatory commissions (SERC) and imposing penalties for load exceeding, amongst others, the Ministry of Power is looking establish the right eco-system that would enable every one to enjoy the benefits of lowering power costs.

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