Government Amends Electricity Rules to Optimize Power Generating Capacity Utilization
Minister Singh emphasized that the Electricity (Late Payment Surcharge and Related Matters) Rules, introduced in 2022, were instrumental in addressing cash flow challenges.
March 02, 2024. By Abha Rustagi
Highlighting the significance of these amendments, Minister Singh emphasized a crucial change regarding surplus power within the declared generation capacity. He underscored that certain power generators were withholding surplus power, leading to underutilization of the national power capacity.
Addressing this issue head-on, the amendments now stipulate that power generators failing to offer their surplus power will forfeit the right to claim capacity or fixed charges corresponding to that surplus quantum. Additionally, the surplus power cannot be sold in the power exchange at a price exceeding 120 percent of the energy charge plus the applicable transmission charge. This measure aims to boost the likelihood of surplus electricity being purchased and utilized effectively.
Moreover, the amendments align the Rules with statutory provisions concerning access to the national power grid. These adjustments are poised to expedite the restoration of grid access for distribution companies facing curtailment due to payment defaults once they settle outstanding dues.
Minister Singh emphasized that the Electricity (Late Payment Surcharge and Related Matters) Rules, introduced in 2022, were instrumental in addressing cash flow challenges primarily faced by generation and transmission companies.
Since their enactment, significant strides have been made in recovering outstanding dues, with a vast majority of distribution companies adhering to regular payment schedules. Notably, the total unpaid bills have plummeted from approximately INR 1.4 lakh crores in June 2022 to around INR 48,000 crores in February 2024.
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