MSERC seeks comments on load factor incentives, CSS and fixed cost recovery

The Meghalaya State Electricity Regulatory Commission (MSERC) has issued a public notice inviting stakeholder comments on three regulatory proposals covering Load Factor incentives and penalties, the future of Cross Subsidy Surcharge (CSS), and the recovery of fixed costs from consumers.

The Commission is reconsidering its earlier decision to discontinue Load Factor-based penalties and rebates. It has proposed a revised incentive and penalty framework linked to actual Load Factor performance of consumers. MSERC has invited views, particularly from industrial and commercial consumers, on the proposed calculation methodology, threshold levels, and the quantum of incentives and penalties.

In line with the Electricity Act, 2003 and the National Tariff Policy, MSERC is also reviewing the treatment of CSS. Stakeholders have been asked to comment on whether CSS should continue or be phased out. If retained, the Commission has sought inputs on the appropriate ceiling, keeping in view the policy provision that CSS should not exceed 20 percent of the applicable tariff for open access consumers.

The public notice further seeks suggestions on the recovery of fixed costs incurred by the distribution licensee, Meghalaya Power Distribution Corporation Limited (MePDCL). These costs include investments in infrastructure, capacity charges under power procurement, and transmission network expenses. MSERC has invited views on the proportion of fixed costs that should be recovered through connection charges or demand charges to ensure a fair allocation of costs across consumer categories.

Written suggestions, objections, or comments are to be submitted to the Secretary, MSERC, by 30 January 2026.  

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