KERC proposes multi-year tariff system across Karnataka

If the Karnataka Electricity Regulatory Commission has its way, by April 2024, consumers in Karnataka will know how much they would have to pay as electricity tariff until FY 2026–27. The commission has proposed a multi-year tariff framework for retail electricity supply for the first time under the Draft Karnataka Electricity Regulatory Commission Regulations, 2023. While the KERC will file tariff orders every year as usual, there will be no surprises for consumers each year as the tariff rates for the “control period,” which in this case is three years, would be fixed at the beginning of the control period itself. Framework based on forecasts for the control period The new draft is a consolidation of the existing “Tariff Regulations” and “Terms and Conditions for Determination of Tariff for Transmission and Distribution and Retail Sale of Electricity Regulations.” It follows the “Model Regulation for Multi Year Distribution Tariff” finalised by the Forum of Regulators, which consists of the chairperson of the Central Electricity Regulatory Commission and chairpersons of the State electricity regulatory commissions, the draft document noted.