The Meghalaya State Electricity Regulatory Commission (MSERC) has issued the draft Multi-Year Tariff (MYT) Regulations, 2026, proposing a new tariff framework for power generation, transmission and distribution utilities in the state for the control period from FY2027-28 to FY2029-30. The draft regulations will be applicable from April 1, 2027 and will cover existing as well as future generating companies, transmission licensees, distribution licensees and electricity traders operating under the jurisdiction of the Commission.
The draft regulations have been released to determine tariffs and aggregate revenue requirements for utilities over a three-year control period ending March 31, 2030. MSERC has proposed that utilities submit detailed business plans, investment plans, capital expenditure projections, loss reduction targets and performance parameters before tariff determination for the upcoming control period. The framework is aimed at providing greater visibility on revenue recovery, infrastructure investments and operational performance across the power sector in Meghalaya.
Under the draft regulations, power utilities will have to submit separate petitions for Aggregate Revenue Requirement (ARR), tariff determination and true-up of previous years. The Commission has also proposed targets related to transmission and distribution losses, power procurement and service reliability. Utilities seeking tariff approval will be required to provide details of their planned expenditure and performance during the control period.
The draft MYT Regulations further provide guidelines for capital investment approvals and treatment of assets created during the tariff period. Projects undertaken by utilities will be subject to prudence checks by the Commission before costs are allowed in tariff calculations. The regulations also contain provisions related to depreciation, return on equity, interest on loans, operation and maintenance expenses, working capital requirements and fuel cost considerations for tariff determination.
MSERC has proposed separate methodologies for generation, transmission and distribution businesses. Distribution utilities will be required to focus on loss reduction trajectories, consumer service improvements and power purchase planning. Transmission utilities will need to provide network expansion proposals and system strengthening plans aligned with future demand growth. Generation companies will be required to submit operational and financial details for tariff approval under the proposed framework.
The draft regulations will replace the existing Meghalaya State Electricity Regulatory Commission (Multi-Year Tariff) Regulations, 2014 and subsequent amendments currently governing tariff determination in the state. Stakeholders, utilities, industry associations and consumers have been invited to submit comments and suggestions on the draft framework before final notification by the Commission.
The proposed regulations come at a time when Meghalaya is updating multiple power sector frameworks covering renewable energy, distributed energy resources, grid operations and tariff mechanisms. Once finalized, the new MYT framework will guide tariff determination and utility performance assessment across Meghalaya’s electricity sector until the end of FY2030. The regulations are expected to play an important role in future investments, network expansion and cost recovery mechanisms for the state’s power utilities.
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