According to reports, the Central Government is planning to bring amendments permitting state electricity boards and distribution companies to increase tariffs every month without the permission of regulatory commission.
The amendments were recommended at a time when agencies incur losses due to hike in the price of fuel used for electricity generation. With the amendment, the agencies can charge rates besides the fixed tariff recognised by Regulatory Commission.
Currently, there is a provision that permits agencies to increase the electricity tariff if the price of fuel used for electricity generation rises. This is called Fuel Surcharge.
Electricity distribution agencies are required to report this cost to the Regulatory Commission every three months. However, the regulatory commission has the final say on the amount to be increased as surcharge. With the amendment, the agencies could increase the rate as per the cost incurred.
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