ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Availability Based Tariff

The basic objective of power sector reform in India has been twofold: provide electricity at an affordable price, and improve the quality of supply. Availability-based tariff (ABT), as an economic instrument, has successfully addressed both the issues: rationalise the tariff structure and ensure quality supply at the grid-level by defining a playing rule for both the generators and the beneficiary states. ABT has also been successful in devising an incentive system to arrest grid indiscipline.

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