Commercial, industrial power tariff set to drop

Commercial, industrial power tariff set to drop

Power tariff for commercial and industrial consumers are set to drop as the states have resolved to prepare a road map to reduce cross subsidies by March 2018, in line with the Tariff Policy.

The states passed a resolution at the national level power ministers conference here to "....bring in... reforms by simplification of consumer tariff categories and rationalisation of electricity tariff," a statement from the Ministry of Power said here on Friday.

The policy as amended in January 2016 provides for lower cross subsidy at a below 20  % level. Cross subsidy is the difference between the highest and lowest tariffs.

Industrial and commercial consumers pay higher tariff because domestic, farm and other users get power at subsidised rates. There are states where tariff slabs number as high as 19.

At the conference, states also agreed to reduce the cross subsidy, said the statement.  

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