Revamping Power: The Cost-Reflective Tariff Solution

Union Minister Manohar Lal announced the introduction of a cost-reflective tariff in the Electricity Amendment Bill. This move aims to reduce losses of power distribution companies. The initiative is set for discussion in the upcoming Budget Session, aiming to ensure profitability and operational efficiency of discoms.

Union Minister Manohar Lal highlighted the introduction of a cost-reflective tariff in the Electricity Amendment Bill to address the financial woes of power distribution companies (discoms). This initiative is on the agenda for the forthcoming Budget Session, aiming to curb discoms' extensive losses.

Speaking at the inaugural conference of the All India Discoms Association, Lal emphasized the critical role of discoms in the electricity supply chain, from generation to distribution. He asserted that the new tariff structure would include all power supply costs, thus aiming to decrease the losses faced by discoms, a concern long-plaguing the industry.

With the profitability of discoms making headlines, the minister underscored efforts in the sector, including the implementation of smart meters and potential regulatory reforms. These steps are crucial in bridging gaps and enhancing the overall efficiency and financial health of discoms across the nation.