SHANTI Act: Industry wants competitive bidding for nuclear power tariff

The enactment of SHANTI Act, allowing private sector entry into nuclear power generation, has also brought focus on regulatory authority to decide tariff electricity generated by private nuclear plants. The industry has been seeking a separate authority to regulate the nuclear power tariff and that the tariff discovery should be through competitive bidding. “Evidently, the fixing of tariff for nuclear power plants is squarely within the domain of DAE, unless DAE elects to delegate that power to AERB by Rules to be notified. From the perspective of private investors, this may be a problem of perception for robustness of tariff determination mechanism and for components of tariff,” says Amit Kapur, Partner at JSA, Advocates & Solicitors. Read more