Govt wants discoms to enforce regular electricity tariff revisions
New Delhi: The National Demoratic Alliance (NDA) government wants state power regulators to ensure regular tariff revision, and put an end to creating the so called regulatory assets, as it seeks to enforce financial discipline on state electricity distribution companies (discoms).
The move seeks to address the ongoing crisis in discoms due to poor financial health, which has led to delayed payment to generation utilities.
A regulatory asset is created when the regulator accepts certain expenditures, but does not factor them in while determining present tariff. The expenditures are adjusted with future tariffs and, in the interim, are accounted for as regulatory assets.
