Tariff Policy, 2006 (India)

The Tariff Policy was formulated pursuant to the Electricity Act, 2003 which empowers the Central Government to formulate the tariff policy. The Act further enables the Central Government to review or revise the tariff policy from time to time. 

The objectives of this tariff policy are to: 

• Ensure availability of electricity to consumers at reasonable and competitive rates.
• Ensure financial viability of the sector and attract investments.
• Promote transparency, consistency and predictability in regulatory approaches across jurisdictions and minimize perceptions of regulatory risks.
• Promote competition, efficiency in operations and improvement in quality of supply.
• Promote generation of electricity from renewable sources.
• Promote Hydroelectric Power generation including Pumped Storage Projects to provide adequate peaking reserves, reliable grid operation and integration of variable renewable energy sources.
• Evolve a dynamic and robust electricity infrastructure for better consumer services.
• Facilitate supply of adequate and uninterrupted power to all categories of consumers.
• Ensure creation of adequate capacity including reserves in generation, transmission and distribution in advance, for reliability of supply of electricity to consumers.