Coal news and updates

No proposal before CERC to cap electricity tariffs

December 10: There is no proposal as of now to put a cap on the sale price of electricity in order to regulate the rising prices, Power Minister Piyush Goyal has said.

Replying to a query in the Rajya Sabha, Goyal said, “As per the information made available by the Central Electricity Regulatory Commission (CERC), there is no such proposal before the commission.”

He said that tariffs of distribution companies are determined by the State Electricity Regulatory Commissions (SERCs)/Joint Electricity Regulatory Commissions (JERCs) based on the principles enunciated under the Electricity Act, 2003 and policies framed thereunder.

“There is no provision for direct regulation of the electricity tariffs by the central government,” the minister said.

However, through appropriate policy framework and programmes, the government is promoting efficiency in generation, transmission and distribution business and also supporting strengthening of the distribution and transmission infrastructure, with a view to reducing the total cost of supply of electricity to the consumer, he said.

“These measures, along with the government’s emphasis on discovery of tariffs through competitive bidding, contribute towards lowering of tariff rates,” Goyal said.