The Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2025, will govern tariff determinations in Rajasthan from April 1, 2025, to March 31, 2030. These regulations apply across the state, covering electricity supply by generating companies to distribution licensees, intra-state transmission and wheeling of electricity, SLDC expenses, and retail electricity sales. They exclude captive generating plants and most renewable energy sources but include mini and micro hydel plants. The regulations allow the Commission to set tariff ceilings in case of electricity shortages for agreements between generating companies and distribution licensees or between distribution licensees.
The regulations emphasize the Multi-Year Tariff (MYT) framework, under which licensees and SLDCs must submit forecasts of Aggregate Revenue Requirement (ARR), revenue from existing tariffs, and proposed tariffs for the control period. Truing-up of prior expenses based on audited accounts is mandated, distinguishing controllable and uncontrollable factors, with mechanisms for adjusting gains or losses. Annual tariff determinations will be based on these forecasts and truing-up results. Applicants opting for the MYT approach must also file timely truing-up petitions; failure to comply may result in penalties or tariff adjustments.
Tariff determinations consider MYT principles, forecasts, truing-up impacts, and adjustments for approved gains or losses. Generating companies, licensees, and SLDCs must submit detailed ARR and revenue forecasts for approval. Tariffs are generally revised annually, with exceptions for fuel cost adjustments or power purchase rate changes. Applications for tariff determination must adhere to specified formats, including applicable fees, and provide clear assumptions for ARR and revenue forecasts. For generating companies, forecasts must detail energy generation and capacity allocation; for transmission licensees, they must include contracted transmission capacities; for distribution licensees, they must specify energy supply and wheeling estimates.
Once applications are registered, the Commission may request additional information or revised petitions. Salient features of the petitions must be published in leading newspapers and on applicant websites, ensuring transparency. Tariffs are finalized following these processes, excluding state government subsidies. However, the Commission also calculates subsidized tariffs based on government commitments. Subsidy payments exceeding ₹5 crore are to be disbursed monthly, while smaller amounts may be paid annually. Distribution licensees must report quarterly subsidy details, including demands raised, payments received, and subsidy gaps. Non-compliance may lead to penalties or disallowance of costs.
To ensure public awareness, distribution licensees must publish tariff details in prominent newspapers and on their websites. Consumers are to be informed of tariff changes through bills, SMS, mobile apps, and other means. Generating companies, transmission licensees, and SLDCs must also publish tariff information online within 15 days of tariff orders. These tariffs remain in force until revised by the Commission and republished.
The regulations mandate adherence to guidelines issued by the Central Government for tariffs determined through competitive bidding under Section 63 of the Electricity Act, 2003. Licensees and SLDCs opting for MYT must align their filings with these regulations. The managing directors of these entities bear responsibility for timely compliance, and the Commission reserves the right to issue suo motu tariff revisions if required. Any excess earnings by licensees will be adjusted in subsequent truing-up petitions.
These comprehensive regulations aim to ensure transparency, accountability, and fairness in tariff determination processes, balancing the interests of generating companies, licensees, and consumers while promoting competition and operational efficiency within Rajasthan’s electricity sector.
