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Presentation on Case I & Case II Bidding Projects ... - Infraline

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Nati<strong>on</strong>al Tariff Policy<br />

Aims & Objectives of Tariff Policy<br />

• Ensure availability of electricity – reas<strong>on</strong>able & competitive rates<br />

• Ensure financial viability and attract investments<br />

• Promote transparency, c<strong>on</strong>sistency and predictability in regulatory approaches<br />

• Promote competiti<strong>on</strong>, efficiency in operati<strong>on</strong>s and improvement in quality of supply<br />

Provisi<strong>on</strong>s of Tariff Policy<br />

• Procurement by distributi<strong>on</strong> companies shall be d<strong>on</strong>e at through competitive bidding.<br />

• Mandates competitive procurement of power and transmissi<strong>on</strong> services – transiti<strong>on</strong>al<br />

window of 5 years period given to public sector companies.<br />

• Promote Multi-Year Tariff (MYT) framework.<br />

• Encourage loss reducti<strong>on</strong> strategies.<br />

• Progressive reducti<strong>on</strong> in cross-subsidy.<br />

• SERC shall fix a min % for purchase of energy from renewable c<strong>on</strong>sidering<br />

• Availability of such resources in the regi<strong>on</strong>, and<br />

• Its impact <strong>on</strong> retail tariffs.<br />

• CERC should lay down guidelines for pricing n<strong>on</strong>-firm power, especially from n<strong>on</strong>–<br />

c<strong>on</strong>venti<strong>on</strong>al sources, where procurement is not through competitive bidding.<br />

• Encourage efficiency in operati<strong>on</strong>s by sharing of gains between licensees and<br />

c<strong>on</strong>sumers

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