Tripura At the Bottom in National Regulatory Power Sector Ranking
Agartala, Feb 24: Tripura have been placed in the lowest performance category – Band ‘E’. The State scored 21.5 out of 100.
The first-ever regulatory performance assessment conducted by the Power Foundation of India (PFI)in association with REC Limited revealed 11 states have secured the top Band ‘A’.
These include four from the Northeast — Assam, Arunachal Pradesh, Meghalaya and Mizoram.
Sikkim have been placed in Band ‘B’ along with nine other states. Total 10 states, including Manipur and Nagaland, are in Band ‘C’.
Four states fall under Band ‘D’. Tripura is the only state in Band ‘E’.
The report evaluates five key parameters. These measure regulatory strength, financial discipline, consumer service standards and readiness for energy transition.
The state registered moderate performance in Financial Health of DISCOMs, Consumer-Centric Reforms and Energy Transition.
But scored zero in the critical parameters like Resource Adequacy and Regulatory Governance.
Zero Score in Resource Adequacy
The Resource Adequacy parameter carries the highest weightage of 32 per cent. However, Tripura failed to score and left with zero heavily impacting the assessment score.
The report cites the absence of notified regulations, defined reserve margins and enforceable compliance mechanisms. There are no approved multi-year capital expenditure plans.
Experts warn that such gaps weaken long-term planning. They increase risks during peak demand or supply disruptions. Resource adequacy is critical for grid stability and investor confidence.
Financial Health of DISCOMs
In Financial Health of DISCOMs, Tripura scored 7.5 out of 25. The assessment examined tariff orders, true-up processes and cost-reflective tariffs. It also reviewed regulatory asset creation and fuel cost adjustments.
The state received full marks for ‘not creating regulatory assets’ in the last true-up. It earned partial marks for ‘fuel cost adjustment mechanisms’.
However, the overall score remains low. Financial stress in distribution companies may affect infrastructure upgrades.
Moderate Performance in Consumer-Centric Reforms
Under Ease of Living and Doing Business, Tripura scored 7 out of 23.
This category measures connection timelines, meter standards and net metering provisions. It also assesses demand charge transparency and open access reforms. The state performed better in maintaining supply quality.
However, it lagged in expanding net metering and open access reforms. These reforms are important for rooftop solar growth and industrial competitiveness.
Energy Transition Shows Early Movement
In Energy Transition, Tripura secured 7 out of 15. The state made some progress in renewable regulation. It earned partial marks for green energy open access and Renewable Purchase Obligation compliance.
However, enforcement mechanisms are not fully institutionalised. Stronger regulations will be needed to attract green investment.
Governance Deficit Persists
Tripura also scored zero out of 5 in Regulatory Governance. This parameter assesses appointment procedures and staffing structures.
Experts say weak institutions delay reforms. Strong governance is essential for overall improvement.
Analysts describe the report as a diagnostic tool. They say Tripura must focus on structured planning and financial discipline. Institutional strengthening is also necessary.
With rising electricity demand, reforms are urgent. The state must improve resource planning, tariff systems and renewable integration.
Governance restructuring will also be key. These steps can improve Tripura’s ranking in future assessments. (First published in Tripura Times)