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Karnataka Power Reforms - Tariff
Rationalization and Support to new Utilities |
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- One of the main factors for the poor financial situation of
the power sector is the tariff structure. It is expected that the regulatory commission
will bring about rationalization of tariffs taking into account, inter-alia, the extent of
subsidy the Government provides, the inherent operational efficiency of the utilities and
the capacity to reduce T&D and commercial losses.
- Efforts will be made to ensure that as far as possible the
newly formed utilities are not burdened with historic liabilities. It is the intention of
the Government of Karnataka that the utilities, particularly distribution of companies,
start their operations with a clean balance sheet.
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