Particle.news
Download on the App Store

CEA Proposes Higher Fixed Power Charges in India Tariff Overhaul

The plan goes to the Forum of Regulators for review.

Overview

  • CEA, which published its report Sunday, proposed raising fixed monthly charges across consumer groups to steady utility revenues.
  • Discoms face a gap because 38% to 56% of their costs are fixed while fixed-charge collections provide only 9% to 20% of revenue.
  • The roadmap targets fixed-cost recovery of 25% from domestic and farm users by 2030 and 100% from industrial, commercial and institutional users by 2030.
  • The report cites rooftop solar, open access and captive generation cutting energy purchases even as users still need grid backup, and it warns bills could rise even when usage falls.
  • CEA also urges standard two-part tariffs with fixed charges tied to connected load and separate treatment for rooftop and net-metering customers.