MoP issues directive to CERC for pass through of costs onto tariffs

The Ministry of Power has issued a directive to the Central Electricity Regulatory Commission (CERC) to allow changes in any central or state government duties to be passed on to electricity tariffs to consumers post bidding. The MoP invoked its powers under Section 107 of the Electricity Act, 2003, to issue the directive to the CERC stating that if there is any change in domestic duties, levies, cess and taxes imposed by the central government, state government or by any government instrumentality leading to corresponding changes in the cost, the same may be treated as a “change in law” and be allowed as a pass-through (unless provided otherwise in the power purchase agreement [PPAs]) subject to approvals by the appropriate commission.