One of the reasons for TANGEDCO’s poor financial health is that tariffs have not been revised on an annual basis, thereby resulting in a gap between average revenue requirement and average cost of supply. Continuous under-recovery over the years and the cancellation and or delay of projects have adversely impacted TANGEDCO’s capability to upgrade and modernise its distribution network and hindered the transition towards a smart grid future. Hence, the proposal of an annual adjustment of tariffs by the rate of inflation is a positive step — this will not only provide more predictability to its consumers but also avoid the one-time steep tariff increase every few years. (Read More)
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