For streamlining the functioning of UT electricity department and effective implementation of multi-year tariff (MYT) concept, the Joint Electricity Regulatory Commission (JERC) has directed the department for constitution of demand side management (DSM) cell.
The MYT concept will come into force from next financial year.
The commission has set a time frame of one month for the formation of cell with an objective of power shortage mitigation, seasonal peak reduction, cost effective energy savings and lowering the cost of electricity.
The DSM cell will be provided with necessary authority and resources so as to execute the functions assigned to it under joint electricity regulatory commission (demand side management) regulations, 2013.
UT superintending engineer MP Singh said they have started the process of constituting the cell. “The cell will help us in achieving the targets under the new concept of MYT,” he added.
Giving details, Singh said the cell would be responsible for various activities such as load research and development of baseline data, formulation of DSM plan, design and development of DSM projects, including cost benefit analysis, plans for implementation, monitoring and reporting and for measurement and verification.
Besides that, the cell would have to perform the duty of seeking necessary approvals to DSM plan and individual programmes, implementation of DSM programmes and any other additional function that might be assigned by the commission from time to time.
The JERC has also directed the department for undertaking load research to identify the target consumer segments and end users to build the necessary database.
The electricity department has also been asked to undertake market research to estimate market potential for specific energy efficiency technologies and applications, establish key performance indicators, and determine existing baseline market conditions.
Based on the results of load and market research, the department will design, develop and implement the DSM programme on the basis of available data.
There are nearly 2.5 lakh consumers falling under different categories, of which 1.75 lakh fall in the domestic category.
What is multi-year tariff
Under multi-year tariff (MYT) concept, the tariff determination exercise will be undertaken once in five years. At present, the revision of tariff is done annually. The JERC has been stressing for introduction of multi-year system for the benefit of consumer and electricity department.
According to officials, the MYT will help in reduction in the regulatory effort on part of the commission and other stakeholders. The system will also help in providing clarity on the rules to be applied over a pre-defined future time period in advance.
The MYT also helps in promoting efficiency, and for consumers’ point of view, improvement in efficiency leads to cost effective supply. The MYT principles are expected to result in reduction in tariffs in the long term.