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Comments and Suggestions on the Proposed Amendment of the National Tariff Policy, May 2018

Author(s): Prayas (Energy Group) Publication Date: July, 2018
 
The National Tariff Policy was amended on 20th January 2016 to account for emerging changes in the sector. The Ministry of Power, seeking to introduce further amendments published draft amendments on 30th May 2018. The proposed amendments have several suggestions to account for the flux in the sector and to direction of reforms being contemplated by the Ministry of Power. 
 
The current draft of the National Tariff Policy amendment has suggestions for many progressive and much needed provisions with regards to information on open access, simplification of tariff categories, and introduction of framework for tariff determination for electric mobility and setting guiding trajectories for AT&C loss reduction. 
 
However, there is lack of clarity in many suggested amendments which could create legal and procedural issues in the future. It is suggested that the Ministry of Power release a statement of reasons or a clarificatory document to ensure informed deliberation. 
 
Many of the amendments seem to be indicating a policy direction which is not keeping with emerging trends and inevitable changes before the sector and may not lead to most efficient outcomes with respect to ensuring the financial viability of DISCOMs. In this context, PEG submissions on provisions related to generation, performance accountability, tariff design, subsidy mechanisms, pre-paid metering, introduction of Direct Benefit Transfer, open access and captive sales migration, tariff rationalisation, accountability of supply and service quality, power procurement and capacity addition planning, renewable energy are detailed in the submission attached below.
 
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