Central Electricity Regulatory Commission (CERC) published an approach paper on the Multi-Year Tariff Regulations for the five year tariff period from FY25 to FY29 and invited public consultation on the same.
In the interest of ensuring efficient and simplified sector operations while safeguarding consumer and sector interests and gaining clarity on the approaches proposed, Prayas (Energy Group)'s inputs included the following: 

  • Encourage competitive bidding for new projects or improve benchmarking of regulated costs, to ensure better price discovery and simplification of tariff setting process
  • Scrutinise and justify capacity additions and replacements, given their increasing economic unviability and the potential for long-duration lock-in of resources
  • PLF incentives should be made moderate and availability weightages should be extended to high demand seasons as well, to encourage optimal and low cost operations during periods of peak demand
  • Lower RoE could be used to penalise delays in project construction, especially for hydro projects, to ensure accountability of the project proponent while encouraging timely completion
  • The extension of useful life to 35 years should not imply the extension of PPA durations, and beneficiaries should continue to have a say in whether they want to procure power from the plant during the project's extended life
  • The  computation of both the normative rate of Interest on Working Capital and the rate of RoE should reflect the low risk and high bankability of central Section 62 projects
  • Toward understanding the challenges and opportunities in reconductoring, the Commission should clarify how tariff setting for reconductoring projects would be undertaken
  • Cost impact of emission control systems should be allowed based on utilisation/adherence to the norms, and their impact on the MoD stack should be considered only after the final deadline of December 2027
  • Energy charge computation should be based on GCV as billed, as opposed to the current GCV as recieved, which reflects a lower coal grade and higher cost burden on the consumer
  • Given that storage will have a key role to play with the increase of VRE, the tariff regulations should provide clarity on the cost impacts and recovery of both BESS and PSP