The Chhattisgarh State Electricity Regulatory Commission (CSERC) has approved the CSERC (Terms and Conditions for Determination of Multi-Year Tariff) Regulations, 2025 for submission to the State Government for publication in the Chhattisgarh Rajpatra. Issued under Notification No. 92/CSERC/2025, the regulations form the tariff framework for the period FY 2026–27 to FY 2029–30.
Formulated under Sections 61, 62, 181(2), and 32(3) of the Electricity Act, 2003, this regulatory framework lays down the principles, processes, and methodologies for determining tariffs and fees for electricity utilities operating within Chhattisgarh.
Effective Period and Applicability
1. Tariff Period
The regulations will:
- Apply for the financial years 2026–27 to 2029–30
- Remain in effect until replaced by a future regulation
2. Entities Covered
The regulations cover all major electricity sector entities operating in the state, including:
- State Transmission Utility (STU)
- Generating stations supplying power directly or through state trading licensees under long-term agreements
- Including generating companies using coal from integrated mines for specified end-use stations
- Intra-state transmission licensees
- Distribution licensees
- State Load Despatch Centre (SLDC) for determination of fees and charges under Section 32(3)
3. Exclusions
The regulations do not apply to:
- Stand-alone generators, except when they use SLDC services for scheduling, metering, energy accounting, or REC-related functions—then SLDC fees apply
- Projects under Section 63
- Generating stations and transmission systems whose tariffs are determined through competitive bidding and adopted by the Commission
4. Procedural Framework
All proceedings under this regulation will be governed by the CSERC (Conduct of Business) Regulations, 2009, along with subsequent amendments.
Guiding Principles Behind the MYT Framework
The Commission’s design of the Multi-Year Tariff (MYT) mechanism draws from:
- Sections 61 & 62 of the Electricity Act, 2003
- The National Electricity Policy
- The Tariff Policy of the Government of India
- CERC (Terms and Conditions of Tariff) Regulations, 2024
- Section 32(3) for SLDC charges
The Commission has also retained flexibility to:
- Issue exemptions from MYT applicability
- Determine tariff separately through specific orders where justified
Such exemptions must be supported by reasons recorded in writing.
Core Features of the Multi-Year Tariff Framework
The MYT structure under the 2025 regulations is built on several foundational components aimed at transparency, efficiency, and predictability:
1. Capital Investment Plan
- Utilities must obtain approval for their capital investment plans for at least the entire control period.
- This ensures planned and project-wise infrastructure expansion and modernization.
2. Truing-Up Mechanism
- The framework provides for annual truing-up of uncontrollable factors and performance deviations based on audited data.
3. Uncontrollable Items – Pass-Through
Costs arising from events beyond the control of a utility—such as natural disasters, policy changes, or variations in statutory levies—will be allowed as pass-through.
4. Sharing of Gains and Losses
- Efficiency gains or cost savings on controllable items will be shared between utilities and consumers.
- Similarly, inefficiencies will result in sharing of losses based on defined principles.
5. Year-Wise ARR and Tariff Determination
- The Aggregate Revenue Requirement (ARR) and tariff for each business (generation, transmission, distribution, SLDC) will be determined for each year of the control period.
6. Input Price of Coal from Integrated Mines
- Where generating companies use integrated coal mines, the Commission will determine the input price of coal, ensuring transparency and cost-reflective tariffs.
Significance of the Regulations
The Multi-Year Tariff Regulations represent a major step toward:
- Ensuring tariff stability and predictability for consumers
- Encouraging long-term investment by utilities
- Strengthening transparency in the electricity sector
- Aligning state regulations with national tariff norms
- Improving operational performance through incentives and accountability
By streamlining tariff determination across generation, transmission, distribution, and SLDC operations, the framework aims to enhance reliability, sustainability, and efficiency of Chhattisgarh’s power sector during 2026–30.