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Private power firms may shift to regulated tariff

Private power firms may shift to regulated tariff
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The government is considering giving a one-time option to private power companies to shift to regulated electricity tariff from tariff discovered through competitive bidding. The Power Ministry has agreed to look into a long-pending demand from private power developers that will help about Rs 4 lakh crore stressed plants recover adequate tariffs and cover costs.

The Ministry has appointed a committee consisting of electricity regulators to conduct a comparative study between competitive tariff and regulatory tariff. The proposal is being considered based on demand from power companies and suggestion from a working group constituted by the Finance Ministry to resolve financing issues to power plants.The committee suggested offering one-time shift of stressed assets from competitive bidding regime to regulated tariff regime.

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