The hits and misses in TANGEDCO’s tariff petition

News Today 09.09.2022

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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