Power Sector Regulation

The traditional cost based regulation is evolving to performance based regulation, and standards of performance are coming up as an integral part of the tariff mechanisms. Significant green regulations are also being adopted to make the energy supply systems carbon neutral. Unless the regulator has a long term view of regulatory impacts, frequent regulatory changes could lead to weak investor confidence. Regulatory mechanisms have to evolve towards providing a subsidy free customer engagement, while keeping pace with evolving markets and smart grid systems.