The Meghalaya State Electricity Regulatory Commission (MSERC) on January 15, 2026, invited Suggestions/Objections/Comments from stakeholders on: Load Factor incentives and penalty, Cross Subsidy Surcharge (CSS) and Demand Charges.
Load Factor Incentive/Penalty Mechanism
In the Tariff Order dated March 24, 2025, the Commission discontinued the existing Load Factor penalty and rebate mechanism, stating that it would be reviewed later after receiving additional details and conducting a detailed study from MePDCL.
The Commission now proposes to introduce a new incentive and penalty framework linked to the actual achievement of higher or lower Load Factor by Industrial and Commercial consumers. Stakeholders are invited to provide comments on:
The proposed incentive and penalty structure
• Methodology for calculation
• Applicable threshold Load Factor
• Quantum of incentive/penalty
Cross-Subsidy Surcharge (CSS)
As per Section 61(g) of the Electricity Act, 2003, and Clause 8.5.1 of the National Tariff Policy, 2016, tariffs should progressively reflect the cost of supply and reduce cross-subsidies. The National Tariff Policy also caps CSS at 20% of the applicable tariff for open access consumers.
In this context, the Commission seeks stakeholder comments on:
• Whether CSS should be continued or phased out
• If continued, the maximum permissible level of CSS for Open Access consumers
Recovery of Fixed Costs through Connection/Demand Charges
MePDCL is statutorily obligated to supply electricity and incurs significant fixed costs related to distribution infrastructure, power purchase agreements, and transmission charges.
While ideally these fixed costs should be recovered through Demand Charges / Connection Charges, the Commission invites stakeholder views on:
• The appropriate percentage of fixed costs to be recovered as Connection Charges
• Ensuring uniform per-unit fixed cost recovery across all consumer categories
Accordingly, notice is hereby issued inviting written suggestions/ objections/ comments from any person/organization likely to be affected by the above-mentioned proposals. Submission of the same in this regard shall be forwarded to The Secretary, Meghalaya State Electricity Regulatory Commission, New Administrative Building, Left Wing, 1st Floor, Lower Lachumiere: Shillong-793001, or by email to [email protected] within January 30, 2026. Any comments/suggestions received after the stipulated date in the Commission’s office will not be entertained.
[File No. MSERC/Misc (Tariff)/2021/366]
