Uniform tariff for domestic and commercial consumers proposed

Posted On : November 17, 2018

CHANDIGARH: The revised proposal for tariff policy is likely to introduce concept of  uniform tariff structure for domestic and commercial consumers. 

Ministry of Power has issued a proposal  new modification  relating  to simplification of tariff categories and rationalization of retail tariff based on  sanctioned load and consumption basis for all categories of consumers. The price of electricity consumed must be based on load used and energy consumed.

There will be five load categories of 0-2 KW, 2KW to  5KW , 5 KW to 10 KW  , 10 to 25 KW and above 25 KW. For load bracket of 0-2 KW energy consumption slab of 0-200 units will be considered, for 2KWto 5 KW energy consumption slab of 201-400 units , for 5 KW to -10 KW  energy consumption slab of 401-800 units,  for 10 kW to -25 KW  energy consumption slab of 801-1200 units and for  more than 25 KW energy consumption slab of more than 1200 units will be considered.

Subsidy and cross-subsidy will be handled through different slabs in load and energy consumed. Consumers of lower slabs and brackets will be subsidized by consumers of higher slabs and brackets.

As per  Ministry of Power the  tariff structures across states in India have become very complex and there is a need to simplify, harmonize and rationalize the tariff structure across states.

Further  under the proposed draft amendment  of 2018 Tariff Policy will become mandatory as such the  central government intends to dictate the detailed  tariff structure on all states. The powers of the states will be curtailed despite the fact that electricity is a concurrent subject.