TARIFF PHILOSOPHY PAPER OF M.P.E.R.C.

 INTRODUCTION

The Electricity Regulatory Commissions Act, 1998 (14 of 1998) (The Act) came into force on 25^th April, 1998 and provides for, establishment of CERC and SERC, with the objective of rationalization of electricity tariffs, transparent policies regarding subsidies, promotion of efficient and environmentally benign policies and matters connected therewith or incidental thereto. The setting up of regulatory bodies is considered as a major step in the direction of effecting reforms in power sector.