The Maharashtra Electricity Regulatory Commission published the draft multi year tariff (MYT) regulations for the control period FY26 to FY30 in March 2024, and invited comments from the public on the same. Prayas (Energy Group) provided comments towards ensuring continued accountability and transparency in the state's power sector, while strengthening existing provisions and requiring justification and clarity on newly introduced measures. 

The inputs provided include:

  • Ensuring timely regulatory processes are conducted through the control period given the significant changes expected in the sector during the control period, including Mid-Term review process and the assessment of compliance to directives and utility performance
  • Mandating public consultation for approval of power procurement plan, any tariff adoption (including that under Section 63), and any deviation from standard bidding guideline for power procurement
  • Introducing provisions to address the impact of MoP (Late Payment Surcharge and Related Matters) (Amendment) Rules 2024 and ensure monitoring of such rollout
  • Removal of cost-plus framework for BESS
  • Improving RoE linked incentives
  • Reconsidering availability-linked AFC recovery and PLF incentives to ensure they are more targeted and based on net load
  • Setting up a committee to undertake assessment of GCV loss issues between the loading and unloading point
  • Allowing ECS cost recovery based on compliance to the norms, and penalising non-compliance after the final deadline which falls within the control period
  • Ensuring transparency regarding expenditure on socio-environmental mitigation measures
  • Mandating cost-benefit assessment of washed coal usage
  • Making additional financial resources available to generators to enable community welfare
  • Requiring detailed capital investment plans on a circle-wise basis
  • Providing an enabling framework for ToD tariffs
  • Assessment of realisation of claimed benefits of smart meters through a rigorous methodology as specified by the Commission
  • Allocating 0.5% of ARR each year for energy efficiency schemes
  • Reducing TBCB threshold from Rs. 500 Crores to Rs. 100 Crores
  • Introducing separate comprehensive regulations for the rest of Maharashtra and new supply licensees in Mumbai
  • Ensuring Technical Validation Sessions and mandating public hearing in multiple locations in the state