India, Jan. 22 -- The Ministry of Power on Wednesday sought stakeholder comments on the draft National Electricity Policy (NEP) 2026, which aims to address high losses and debt of discoms, non-cost-reflective tariffs, and high cross-subsidisation.A non-cost-reflective tariff is a pricing structure in which the rate charged to a particular consumer category is below the utility's average cost of generating, transmitting, and distributing electricity to that category.
While cross-subsidisation is a pricing mechanism in which certain consumer groups (industrial, commercial, and higher-income domestic users) are charged tariffs above the cost of supply to offset and subsidise the lower tariffs provided to other groups, such as agricultural c...
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