Gujarat Electricity Regulatory Commission (GERC) published a discussion paper on the Multi-Year Tariff Regulations for the five year tariff period from FY2024-25 to FY2028-29 and invited public consultation on the same.

Prayas (Energy Group) submitted inputs, including the following, dealing with the generation aspects of the discussion paper: 

• A mid-term review tariff process applicable to all utilities would allow for course correction and reduced risks, while providing certainty to stakeholders
• Prudence checks towards capital investement schemes should also include justification of the necessity of the project itself to prevent cost and resource lock-ins
• PLF incentives and availability weightages should be introduced to encourage optimal and low cost operations during periods of peak demand
• RoCE method for new capacity, and adjustment of equity for existent projects to normative/salvage value levels, could be considered
• Given that the final date of compliance to the revised environmental norms falls within the discussed control period, the regulations must include the impact of charges related to adherence to such norms
• Energy charge computation should be based on GCV as billed, as opposed to the current GCV as fired, which reflects a lower coal grade and higher cost burden on the consumer