Power regulators in the country may be barred from the practice of not allowing discoms to promptly pass on part of their expenses to consumers. The provision of creating “regulatory assets” — recoverable discom expenses which regulators acknowledge as pass-through costs, but are not immediately built into tariffs — will be scrapped from the tariff policy, official sources said.
While no new regulatory assets will be created, the existing stock — a whopping Rs 1.2 lakh crore at FY19 end — will be cleared over the next 3-5 years through incremental tariff hikes, the sources said.
