GERC Issues Request for Proposal for Comprehensive Retail Electricity Tariff Reform Study in Gujarat

July 15, 2026 By Gaurav Nathani 4 min read
0:00 / 04:46

EXECUTIVE SUMMARY

The Gujarat Electricity Regulatory Commission (GERC) has invited proposals from qualified consultancy firms to conduct a comprehensive study on the rationalization of retail electricity tariff structures and the formulation of a roadmap for progressive reforms. This nine-month assignment aims to modernize the state’s pricing framework to accommodate shifting energy technologies and consumer requirements. Interested parties must submit their technical and financial proposals to the Commission no later than August 3, 2026, by 6:00 PM IST.

OBJECTIVE AND SCOPE OF WORK

The Commission requires a technical and financial assessment to develop a simpler, transparent, and cost-reflective tariff framework. The selected consultant must deliver the following specific task areas:

  • Tariff Rationalization and Design: Redesigning the retail structure to enhance simplicity and transparency while ensuring rates reflect the actual cost of supply and support the financial sustainability of distribution companies.
  • Cost of Supply Analysis: Developing robust methodologies to calculate delivery costs across various voltage levels and consumer categories to ensure a fair tariff structure based on the true cost of service.
  • Time-of-Day (ToD) Pricing: Evaluating seasonal demand, peak/off-peak consumption, and the increasing share of intermittent renewable energy. This analysis must focus on utilizing dynamic pricing as a management tool to improve grid stability and encourage efficient electricity usage.
  • Emerging Technology Integration: Designing specialized tariff models for Electric Vehicle (EV) charging infrastructure, Battery Energy Storage Systems (BESS), Green Hydrogen projects, and prosumers—defined as entities that both generate and consume electricity.
  • Data Analytics and Benchmarking: Utilizing AI-assisted data analytics and financial modeling to produce benchmarking reports comparing Gujarat against leading domestic and international markets.
  • Reform Roadmap and Simulation: Formulating a progressive tariff reform roadmap that culminates in a final integrated tariff simulation model. This model will serve as a tool for the Commission to measure the impact of reforms on both utilities and consumers.

ELIGIBILITY AND QUALIFICATION CRITERIA

To qualify for the assignment, consultancy firms must meet the following administrative, financial, and technical standards:

ParameterMinimum Requirement
Corporate LongevityMinimum of 10 years of consulting experience in power sector regulations or tariff studies.
Project ExperienceSuccessful completion of at least five similar assignments for electricity regulatory commissions or distribution companies.
Human CapitalA minimum of 100 full-time professionals in India, including at least 40 specialists dedicated specifically to the power or infrastructure sectors.
Financial StandingPositive net worth and an average annual turnover of at least ₹10 crore over the last three audited financial years.

BIDDING TIMELINE AND SUBMISSION PROCESS

The RFP mandates a two-envelope bidding system and adherence to the following logistical requirements:

  • Submission Deadline: August 3, 2026, by 6:00 PM IST.
  • Submission Format: Technical and financial bids must be submitted in separate sealed envelopes.
  • Submission Address: GERC Office, 6th Floor, GIFT ONE, Road 5C, Zone 5, GIFT City, Gandhinagar – 382 355.
  • Project Duration: A nine-month assignment with payment milestones strictly linked to the delivery of specified reports and the simulation model.

EVALUATION METHODOLOGY

Proposals will be evaluated in accordance with the GERC (Appointment of Consultants) Regulations. The Commission will utilize a weighted scoring framework to assess technical competence and financial competitiveness.

Technical Scoring Weights: The technical committee will assign marks based on the following ranges:

  • Relevant experience for the assignment: 10 to 40 weight.
  • Quality of the proposed methodology: 20 to 50 weight.
  • Qualifications of key staff: 30 to 60 weight.
  • Knowledge transfer to GERC staff: 0 to 35 weight.

The Commission stipulates that the financial score weight will not exceed 40. Under this framework, the least-cost financial bid will receive a score of 100, with other bids receiving scores inversely proportional to their quoted costs.

The official link to the Request for Proposal (RfP) on the Gujarat Electricity Regulatory Commission (GERC) website, which contains the details for the study on the Rationalisation of Retail Electricity Tariff Structure, Tariff Design, Cost of Supply, Time-of-Day Tariff and Roadmap for Progressive Tariff Reforms in Gujarat, is:

https://gercin.org/news/?cat=46825

For general updates and all official notices from the Commission, you can also refer to their “All News” section at https://gercin.org/all-news/.

Official Sources

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