The Central Electricity Authority (CEA) on May 12, 2026, issued notification on Need for a National Framework for Rationalizing Fixed Charges and Tariff Redesign.
The Ministry of Power has sought inputs on a representation from the All India DISCOMs Association (AIDA), which highlights the need for a national framework to rationalise fixed charges and redesign retail electricity tariffs. The objective is to ensure better recovery of fixed costs by power distribution companies (DISCOMs).
The issue was discussed in stakeholder meetings held on January 19, 2026, and March 23, 2026, under the Central Electricity Authority (CEA), involving AIDA, Prayas, and various distribution licensees. Based on these deliberations, a report has been prepared recommending a graded increase in the proportion of fixed charges across different consumer categories, to be determined by respective electricity regulators.
It has been suggested that the recommendations of the report be taken up with the Forum of Regulators for further consideration and implementation.
[Notification No. CEA-EC-11-19(17)/3/2026-FCA Division/298]
