TNERC to appoint consultant to revise tariff norms

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has invited bids to appoint a consultant for overhauling its electricity tariff regulations. The move comes in the wake of the state’s recent power sector restructuring, which saw the bifurcation of the erstwhile Tangedco into three separate entities – Tamil Nadu Power Generation Corporation (TNPGCL), Tamil Nadu Power Distribution Corporation (TNPDCL), and Tamil Nadu Green Energy Corporation (TNGECL).

The existing tariff regulations — TNERC’s Tariff Regulations, 2005 and Multi-Year Tariff (MYT) Regulations, 2009 — are now deemed outdated. These are set to be repealed and replaced with a comprehensive set of new regulations for the state’s electricity value chain: intra-state generation (conventional and non-conventional), transmission and state load despatch, and distribution.

The new MYT framework is expected to introduce more granular norms for various generation sources — thermal, gas, solar, wind, hydro, pumped storage, biomass, waste-to-energy, bagasse-based cogeneration, hybrid systems, and battery energy storage (BESS). It will also include tariff-setting mechanisms for transmission projects undertaken through Tariff-Based Competitive Bidding (TBCB) and monetisation of lines and substations.

The consultant will be tasked with reviewing TNERC’s current regulations, analysing the Central Electricity Regulatory Commission (CERC) norms, and drawing from best practices across other State Electricity Regulatory Commissions (SERCs). The assignment includes preparing draft regulations, explanatory memoranda, stakeholder response summaries, legal support in case of writ petitions, and finalising gazette notifications.

Technical bids will be opened on July 10, 2025. The RFP is available on the state’s e-procurement portal, tntenders.gov.in.