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    Draft Electricity (Amendment) Bill proposes automatic monthly change in power tariff based on fuel cost

    Draft Electricity (Amendment) Bill proposes automatic monthly change in power tariff based on fuel cost

    Draft Electricity (Amendment) Bill proposes automatic monthly change in power tariff based on fuel cost
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    By Abhimanyu Sharma   IST (Published)

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    The Union Power Ministry has sent the draft for stakeholder consultation, seeking comments from all government and private stakeholders by 11th September.

    The Draft Electricity (Amendment) Bill has proposed an automatic monthly change in power tariff based on fuel cost. The Union Power Ministry has sent the draft for stakeholder consultation, seeking comments from all government and private stakeholders by 11th September.
    The draft proposes that the monthly automatic price adjustment is to be trued up annually by an Appropriate Commission, the surcharge payable by consumers seeking open access shouldn't exceed 20 percent of the supply cost, and that an appropriate commission will specify the price adjustment formula for recovery of power purchase cost by the distribution licencee.
    Another proposed reform is the delicensing of standalone energy storage system (ESS) which will be treated at par with a generating company, with the developers and owners of ESS free to sell, lease or rent it to Load Despatch Centres or gencos.
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    The draft asks distribution licencees to account due subsidy in line with an SOP issued by Centre, along with issuance of guidelines to assess resource adequacy in generation planning stage within 6 months of notification of rules.
    The draft asks State Commissions to frame rules on resource adequacy in line with Central guidelines and model rules made by regulators, as well as a half-yearly review of resource adequacy of distribution licencees.
    In a bid to speed up renewable energy clearances, the draft asks for a decision to be taken on grant of concurrence to hydroelectric generation schemes within 150 days of application, and off-the river pumped storage plant schemes within 90 days of application.
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