The MoP has issued a notification for automatic pass-through of fuel and power procurement costs in tariffs. The ministry has taken into consideration the recent spike in the prices of coal and gas in the international market and noted that due to the lack of an automatic cost pass-through mechanism, gencos are unable to maintain fuel stocks. Discoms also face revenue constraints as the corresponding pass-through of costs is not done regularly in retail tariffs. Some states already have a formula for fuel surcharge adjustment for this purpose. However, it is not an automatic pass-through and approval of the state commission is needed, which leads to delays.