Expect to be charged less for electricity in the coming years.
Reason: From April 2011, the state power regulator will determine the tariff for a period of five years, and not every year.
The Maharashtra Electricity Regulatory Commission will follow a principal of multi-year tariff.
This means tariffs will be allowed to change only due to change in the values of selected parameters in a pre-determined manner.
On Monday, the state power regulator declared the multi-year tariff regulations that would be binding on all the distribution, generation, transmission, wires and supply business companies.
The regulator also said that the multi-year tariff would help reduce tariff in the long run.
One of the major problems faced by the utility companies, said the regulator, were lack of long-term planning discipline.
“The companies will submit a five-year business plan which will require them to project the demand-supply scenario, power procurement plan and capital investments required to achieve the desired operational efficiency,” said the statement issued by the regulator.
The next control period of five years will commence on April 1, 2011 up to March 31, 2016.