Aims of the Tariff Policy - electricity policies:
The aims of the National Tariff Policy are to:
1. Ensure availability of electricity to consumers at reasonable and competitive rates;
2. Ensure financial viability of the sector and attract investment;
3. Promote transparency, consistency and predictability in regulatory approaches across jurisdictions and minimize perceptions of regulatory risks; and
4. Promote competition, efficiency in operations and improvement in quality of supply.
We present, in short, an analysis of the National Tariff Policy and its implications for power distribution utilities.
The policy emphasizes on deciding the rate of return, depreciation and other issues in tariff fixation and attracting investment in the power sector. This has to be completed through lowering the "regulatory risk" and introducing clear-cut tariff setting principles and philosophies.