New power reforms: govt weighs plan to abolish uniform electricity tariffs across Discos
https://www.dawn.com/news/2041492
The Privatisation Commission has unveiled a comprehensive set of power sector reforms aimed at streamlining the acquisition of state-owned distribution companies, known as Discos. Among the most significant changes is the proposed dismantling of a uniform electricity tariff system across all Discos, allowing competing private suppliers to set their own rates while maintaining regulated tariffs for those served by a Supplier of Last Resort (SoLR) mechanism.
The reforms also include a plan to gradually reduce tariff differential subsidies, align domestic electricity prices with actual supply costs, and extend the regulatory tariff period from five to seven years. The proposal aims to support the privatisation process by providing investors with greater policy and regulatory certainty.
The Privatisation Commission is currently seeking feedback from relevant ministries, regulators, and investors on the 25-page draft titled 'Power Distribution Companies’ Post-Privatisation Regime: Market Architecture, Business Models and Regulatory Oversight.' The government hopes to present the reforms to the prime minister this week.
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