Civil society organizations should be seen as allies in regulatory decision-making
Recently, the government launched the Ujjwal Discom Assurance Yojana (UDAY) to facilitate the financial turnaround of discoms, the third such scheme launched in the past 14 years. The earlier two schemes did not work and discom losses have continued to mount. A key factor for the success of schemes such as UDAY is the setting of electricity tariffs that provide sufficient revenue to ensure full recovery of electricity supply costs. Unfortunately, this has been difficult, with consumers instead being wooed with promises of lower rates by election candidates and state governments.
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