SME Times News Bureau | 14 Sep, 2018
The government is injecting competition in the power
distribution sector through content and carriage reforms to make the supply of
power consumer-friendly, said Power Secretary Ajay
Speaking at a workshop organized by FICCI jointly
with Shakti Sustainable Energy Foundation and PwC, late Wednesday evening, Bhalla stressed
on the need for the regulators to be market-oriented and
The workshop was held at a time when Ministry of Power
(MoP) is taking concerted steps to simplify and rationalize power tariffs
in the country through amendments in policies and provisions.
The workshop witnessed deliberations among participants on
the necessity of tariffs and market reforms for the overall benefit of the
Tariff reforms can act as a powerful tool to tackle issues
pertaining to financial distress in the distribution sector, high levels of
cross subsidies, peak power deficits, and lack of competition in the sector.
The prevailing tariff structure across the states are complex, non-uniform and
do not adequately reflect the costs that are incurred in power supply.
The workshop also discussed approaches to estimate
cost of supply, designing alternative tariff structures and assess consumer
affordability and the economic cost of load shedding.
It was attended by the entire spectrum of power sector
stakeholders including those from the (MoP), state regulatory
commissions, distribution utilities, industries, research institutions,
multilateral and bilateral developmental institutions.