The Meghalaya State Electricity Regulatory Commission (MSERC) has released the pre-publication draft of the Meghalaya State Electricity Regulatory Commission (Multi-Year Tariff) Regulations, 2026, introducing a new framework for tariff determination in the state’s electricity sector. Issued on May 25, 2026, the draft regulations are aimed at creating a more structured, transparent, and predictable tariff system for power utilities operating in Meghalaya.
According to the draft notification, the new regulations will come into effect from the date of their publication in the Official Gazette and will govern electricity tariff determination from April 1, 2027. The framework will apply to all existing and future generating companies, transmission licensees, distribution licensees, and the State Load Despatch Centre (SLDC) operating within the state.
The new regulations will replace the earlier Meghalaya State Electricity Regulatory Commission (Multi-Year Tariff) Regulations, 2014, including all amendments made over the years. However, matters related to review or truing-up of revenues and expenditures for financial years before 2027–28 will continue to be handled under the provisions of the 2014 regulations.
Under the proposed framework, the Commission has defined a “Control Period” of three financial years beginning from April 1, 2027, to March 31, 2030. Similar three-year control periods will continue thereafter. The regulations require all regulated entities to submit a detailed Business Plan to the Commission at least three months before filing tariff petitions. The Business Plan must include projected capital expenditure, manpower planning, operational targets, and financial projections.
For distribution licensees, the regulations specify additional requirements such as demand forecasts, power procurement planning, strategies for the reduction of distribution losses, and measures to improve collection efficiency. The Commission has stated that these measures are intended to improve operational efficiency and strengthen accountability within the power sector.
The scope of the regulations includes electricity supply by generating companies to distribution licensees, intra-state transmission services, SLDC charges, intra-state wheeling, and retail supply of electricity. However, renewable energy projects and tariffs will continue to be governed separately under dedicated renewable energy regulations issued by the Commission.
The draft regulations also clarify that tariffs discovered through transparent competitive bidding processes in accordance with central government guidelines will be adopted directly by the Commission.
To improve financial transparency, utilities have been directed to maintain separate audited accounts for generation, transmission, and distribution businesses. In cases where complete segregation of accounts has not yet been achieved, utilities have been granted a one-year period from the date of notification to complete the process. Until then, tariff petitions must include detailed allocation statements for revenue and expenditure apportionment.
The Commission has further stated that once a tariff application is received and accepted, it may conduct public hearings before issuing the final Tariff Order. MSERC is expected to issue the final order within 120 days from the date of acceptance of the application, detailing the approved aggregate revenue requirement and consumer tariff structure for the state.
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