The Rajasthan Electricity Regulatory Commission published the draft notification on the Tariff Regulations for the control period from 1st April 2025 to 31st March 2030, and invited public comments on the same. 

The tariff regulations, and related processes, have implications on all sector stakeholders in the state for the next five years and beyond. Given this, it is crucial to further strengthen flexibility measures, target incentives, safeguard consumer interests and ensure clarity in tariff regulations. Prayas (Energy Group) provided suggestions towards strengthening the proposed tariff regulations, which included the following:

• Allow new capacity additions only through Section 63 route
• Cap the fuel transfer price of coal from captive mines to the CIL notified price for the corresponding grade of coal
• Only approve costs associated with coal washing based on assessment of reporting and cost-benefit analysis carried out by the generating companies
• Consider a two-part RoE (with base and performance-based components)
• Consider GCV 'As Billed' for ECR calculations
• Mandate targeted availability linked weights for fixed cost recovery and PLF incentive calculations across peak/off-peak hours and high/low demand season, defined on net load
• Introduce regulatory provisions to enable MoP LPS Rules Amendment 2024 and amend the State Grid Code accordingly
• Allow ECS cost recovery based on compliance to the norms, which can be linked to state PCB certification for adherence
• Reduce the proposed threshold for projects under the TBCB mode to Rs. 100 crores
• Subject O&M expenses and other controllable parameters to a gain/loss sharing mechanism
• Specify a minimum percentage for R&M, use a circle-wise approach for estimating O&M expenses and allocate higher expenses to circles with poor network spread and low recent capex
• Amend State Grid Code to reflect the changing realities of the state power sector
• Include steps and measures to improve the efficacy of the tariff setting process