Senior Energy Specialist, The World Bank
1Senior Financial Analyst, The World Bank
*The views expressed in this paper are of the authors and not of the World Bank.
The development of an incentive-based tariff scheme has had a significant impact on the operation of the Indian power sector. Voltage fluctuations have been minimized, greater supply made available, and costs reduced. All this was achieved through the ABT (availability-based tariff) introduced in 2000. This paper considers the development, implementation, and results of this sector's change bulk tariff system.
