Electricity Regulatory Commission Issues New Directive for Transparent Tariff Setting
Summary
The Electricity Regulatory Commission has issued a new directive to make electricity tariff setting fully cost-based and transparent, with mandatory public hearings and clearer rules on returns, debt-equity ratios, and tariff reviews. The old tariff determination directive has been abolished, and the new framework is intended to protect consumers while supporting investment and improved service quality.
Key Points
- The Electricity Regulatory Commission has introduced a new directive for cost-based and transparent electricity tariff determination.
- Public hearings are now mandatory, and stakeholder feedback must be considered before final tariff approval.
- The directive sets limits on returns on equity, fixes a 70:30 debt-equity ratio for new projects, and allows yearly tariff review applications.
- The earlier Electricity Consumer Tariff Determination Directive, 2076, has been abolished, though past actions will be treated as valid under the new rules.
