The Central Electricity Regulatory Commission published the draft notification on the Multi Year Tariff (MYT) Regulations for the control period FY25-FY29 on 4th January 2024, and invited public comments on the same.

The draft regulations, and related processes have taken several positive actions and steps in the right direction. However, it is crucial to further strengthen flexibility measures, target incentives, safeguard consumer interests and ensure clarity in the MYT regulations – given the fast paced changes in the sector and the impact of these regulations on multiple stakeholders across the country for the next five years and beyond. 

Towards this, PEG's inputs included the following suggestions: 

• Encourage new capacity addition through Section 63 and consider Section 62 capacity additions only with fresh beneficiary consent
• Ensure public process is carried out for cost approval and tariff determination of central generators
• Reintroduce availability linked fixed cost recovery across high/low demand seasons with separate and appropriate weights
• Revise the suggested PLF incentives such that they are targeted and modest
• Consider GCV 'As Billed' for ECR calculations and penalise non-compliance with existing regulations regarding publication of data on fuel procurement
• Cap blending of fuel without beneficiary consent based on impact on ECR
• Cap input price of coal from integrated mines at the CIL notified price for the corresponding grade
• Allow costs related to Emission Control systems based on adherence to the revised emission norms