Cost-reflective tariffs a must for power reform says Union Minister Shripad Yesso Naik

Vijayawada, Apr 22 (PTI) Union Minister Shripad Yesso Naik on Tuesday highlighted that cost-reflective tariffs, regulatory reforms, and the use of modern technologies are essential to making the power distribution system financial sustainable.

Addressing the fourth Group of Ministers (GoM) meeting on power sector reforms, the minister of state for power said coordinated reforms are significant to address the financial and operational challenges faced by power distribution companies (DISCOMs).

“Timely cost-reflective tariffs, regulatory reforms, and adoption of modern technology are crucial to ensure financial sustainability and a reliable power distribution system,” said Naik.

He said tariff adjustments linked to inflation and power purchase cost reflect market realities, aiding financial stability and creating a predictable business environment for utilities.

Naik called for regulatory reforms, fuel cost adjustments, and simplified net metering to boost DISCOM health and promote rooftop solar growth across states like Andhra Pradesh.

Andhra Pradesh Energy Minister G Ravi Kumar reaffirmed the state's commitment to distribution reforms.

Chief Secretary K Vijayanand emphasized balancing operational discipline with tariff realism, urging lower interest rates to ease DISCOMs’ financial burden.

He also stressed the importance of targeted subsidies for weaker sections to balance social welfare and financial health.

The chief secretary raised concerns over the high financing costs being borne by DISCOMs, demanding a reduction in interest rates from lending institutions to ease the financial burden on utilities.

(This story has not been edited by THE WEEK and is auto-generated from PTI)