CERC issues an approach paper on terms and conditions of tariff regulations

The Central Electricity Regulatory Commission (CERC) has issued an approach paper on terms and conditions of tariff regulations for the tariff period — April 1, 2024 to March 31, 2029. The commission has noted that the tariff determination process should be simplified and a more pragmatic approach which does not involve microanalysis of each cost component should be adopted. It has proposed shifting to normative based tariff mechanism (approach 1) or adopting a simplified performance-based hybrid approach (approach 2). The last date of submission of comments and suggestions is July 15, 2023.