MoP issues draft amendments to Tariff Policy, 2016

The MoP has issued draft amendments to the Tariff Policy, 2016. As per the proposed amendments, any change in domestic duties, levies, charges, surcharges, cess and taxes after the award of bids which leads to changes in the cost will be treated under “change in law” and will be allowed as a pass-through subject to approval by the appropriate commission. Further, in order to ensure that the burden of discom inefficiencies are not passed on to the consumers, the state electricity regulatory commissions will not consider aggregate technical and commercial (AT&C) losses exceeding 15 per cent for the determination of tariffs after March 31, 2019. Other amendments relating to renewable purchase obligation, subsidy, cost of supply and electric vehicles have also been proposed.