The Energy Regulatory Commission (ERC) is preparing the pricing scheme for the government’s planned auction this year dedicated to gas-fired power plants, according to BusinessWorld.
In a draft resolution, the ERC said it seeks to establish a gas price benchmarking technology that will outline limitations and price caps on allowable pass-through charges to consumers. The scheme is intended to ensure that costs passed on to electricity buyers remain reasonable and transparent.
The auction forms part of government efforts to secure reliable power supply while managing prices. The ERC’s regulatory framework for gas pricing will play a key role in shaping how much consumers pay for electricity generated from natural gas.