The UT electricity department has started the process for implementation of multi-year distribution tariff (MYT), which will come into force from next financial year.
Recently, the Joint Electricity Regulatory Commission (JERC) approved the regulation for implementation of MYT and as per orders of the commission, the electricity department will have to file business plan by September 30 for a control period of three financial years from April 1, 2015, to March 31, 2018, along with a fee of `1 lakh.
The department has hired a consultant for preparing the business plan. UT superintending engineer MP Singh said they had started working on implementing the concept of MYT and would submit the business plan by next month.
At present, the revision of tariff is done annually.
Under the new system, the time of day tariff would be structured across three time slabs to denote normal, peak and off-peak periods. The time-periods would vary according to different seasons of the year.
The peak tariff would be 10%-20% higher than the normal tariff and the off-peak tariff would be priced 5-10% lower than the normal tariff.
The peak and off-peak hours during seasons will be notified in advance.
There are nearly 2.5 lakh consumers falling under different categories of which 1.75 lakh fall in the domestic category. The new system aims at helping the department in promoting efficiency and from 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.
The commission has also approved regulation for demand-side management (DSM), which is mandatory for enforcement of the MYT concept.
DSM aims at power shortage mitigation, seasonal peak reduction, cost effective energy savings, lowering the cost of electricity, reduction in emissions of greenhouse gases and any other objective, which may be stipulated by the commission from time-to-time.
It is also 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.
The electricity department will have to formulate and submit to the commission a perspective DSM plan covering entire period of the control period, within one year of notification of these regulations.