Power tariffs across the country are set to increase if an advisory of the union power ministry is anything to go by. Concerned at the growing gap between the rate at which power is bought and sold by state distribution utilities, the ministry has recommended an "appropriate revision" of power tariffs in most states.
Seeking intervention of the Appellate Tribunal for Electricity, the power ministry has asked the tribunal to "issue directions to the state regulatory authorities to revise the tariff appropriately (suo motu, if required), in the interest of improving the financial health and long-term viability of the electricity sector in general and distribution utilities in particular."
The appellate tribunal, enjoying powers under the Electricity Act, can direct state regulatory authorities to revise tariffs. Moreover, its decisions can be challenged only in the Supreme Court.