CERS demands MYT implementation in Gujarat

Ahmedabad, Nov 2 (UNI) The Consumer Education and Research Society (CERS) has asked the Gujarat Electricity Regulatory Commission (GERC) to implement multi-year tariff (MYT) in Gujarat with effect from April 1, 2008.

The MYT is a performance-based tariff which makes electricity companies accountable and directs them to achieve pre-determined targets set by the Commission, the CERS said in a release here today.

The National Tariff Policy, notified by the Central Ministry of Power on January 6, 2006, had directed all state electricity regulatory commissions to implement MYT in their respective states from April 2006. Except a few states like Maharashtra, Karnataka, Andhra Pradesh, Delhi and Rajasthan, other states, including Gujarat, have delayed implementation of MYT.

The MYT will initially be for three years, which may be extended up to five years after observing its implementation and performance.

Listing several advantages of MYT, the CERS has said upon its implementation, the State Commission will have to declare a mechanism for sharing the profit and losses among the consumers and the utilities as per pre-determined targets .

In case of a profit, 33 per cent of it will be transferred to consumers by way of a reduction in tariff for the next year, 33 per cent will be kept as special reserve, and 33 per cent will be used for upgrading the system by the electricity companies. In case, pre-determined targets are not achieved by the electricity companies, entire loss will be borne by them and no revision of tariff will be permitted.

UNI