CEA seeks electricity bill change to help utilities cover costs
The Central Electricity Authority (CEA) is pushing for a big change in electricity bills to help power companies cover their costs.
Right now, fixed charges on your bill only cover a small part of what these companies actually need, just 9% to 20%, while their real fixed costs are much higher (38% to 56%).
The CEA thinks the current system isn't working and needs an update.
CEA proposes nationwide 2-part tariffs
Their plan? Make billing more transparent with a standard method for calculating fixed costs and introduce two-part tariffs across all states.
Over the next five years, expect fixed charges to go up gradually, so by 2030, households and farmers would cover 25% of these costs, while businesses would pay the full amount.
There's also a new category coming for rooftop solar users, so people who send power back to the grid will have different rates.
States like Maharashtra, Delhi and Tamil Nadu are seeing traction for rooftop solar users, and separate fixed, variable and ToD tariffs are being considered for net metering consumers.