ELectricity regulator’s ultimatum to Andhra power discoms on new tariff proposal

Coming down heavily on the discoms for not filing their tariff proposals on time despite availing three extensions, the Electricity Regulatory Commission (ERC) on Saturday gave an ultimatum to the power utilities to do the job by February 23. Any delay on the part of the discoms would force the ERC to decide suo motu the issue of power tariff for the coming fiscal, it said.

In a letter to the CMDs of the Southern and Northern Discoms on Saturday, the ERC secretary made it clear that as per the provisions of the Electricity Act, 2003, the tariff proposals should have been submitted by November 30, 2016.

“The TS Discoms submitted the Annual Revenue Requirement (ARR) before the commission on November 30, 2016, and requested from time to time for an extension of time for filing of tariff proposals citing certain reasons. Considering the requests of the Discoms, the commission granted extension thrice for filing of tariff proposals,” said the letter.

Sources said the ERC decided to write the letter after the Discoms, instead of submitting the tariff proposals, last week sought yet another extension till February 28, 2017, to do the same. Taking strong exception to this, the commission expressed its displeasure with the discoms for not filing the tariff proposals.

“In this regard, I am to bring to your notice the provisions of the National Tariff Policy under clause 8.1 (7), appropriate commission should initiate tariff determination and regulatory scrutiny on a suo motu basis in case the licensee does not initiate filings in time. It is desirable that requisite tariff changes come into effect from the date of commencement of each financial year and any gap on account of delay in filing should be on account of licensee,” said the secretary in the letter.

Taking all aspects into consideration, the commission directed the Discoms to file the tariff proposals on or before February 23, 2017, and, in default, the commission announced that “it will act suo motu for determination of the tariff for financial year 2017-18 in accordance with the directions of the Appellate Tribunal for Electricity.”

Source:- ET ENERGY


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