Features of tariff policy, Electrical Engineering

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Features of tariff policy:

For projects whose tariff is determined by performance- based cost of service regulation, the advantages of decreased tariff after full depreciation of assets is to be made available to the consumers. Same, for preventing front loading of tariff, debt of longer tenor and adoption of mechanisms such as take-out financing are to be considered. Restructuring of debt is to be done keeping in view the interest of consumers. Any additional capital investment for renovation and modernization is to be linked along with pre- determined efficiency gains or for sustaining high level performance.

To make improve grid discipline, the availability-based tariff system is to be extended to the state level.  This will also facilitate integration of captive generation plants along with the grid.


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