Panel will continue to decide power tariff post privatisation: UT
The UT Administration has clarified that the Joint Electricity Regulatory Commission (JERC) will continue to regulate the power tariff even after the privatisation of the Electricity Department.
According to the Administration, the privatisation is being done to overhaul the old infrastructure of the department and reduce transmission and distribution (T&D) losses.
The process was initiated to bring significant structural reforms, including improving the quality, efficiency, security and reliability of power supply and consumer services; reducing T&D losses to align with global benchmarks; and ensuring affordable and reasonable electricity pricing for consumers.
The current T&D losses in the city are about 10.07%, which could further increase due to the aging infrastructure. The Central Government has set a target to reduce the losses to 5-7%, but this could be achieved only with upgraded infrastructure, they added.
A key focus of these reforms is to address the aging power distribution infrastructure, which requires modernization and investment to enhance efficiency and reliability. This includes introducing IT-enabled services for seamless consumer support and reducing T&D losses to create a more economical tariff structure that benefits consumers.
The JERC plays a crucial role in overseeing the development of the power sector. Its responsibilities include ensuring uninterrupted and high-quality power supply and protecting consumers’ interests. It is also responsible for tariff determination, balancing revenue requirements and consumer satisfaction.
