NEW DELHI: The Ministry of Energy is seeking to implement the automatic monthly review of electricity tariffs by amending the 2005 electricity regulations to achieve a key goal of the 2022 Electricity Bill (Amendment) which is blocked in ParliamentStanding Committee on Energy.
One of the key objectives of the bill is to ensure the recovery of “all prudent costs” of electricity from consumers to improve the financial health of distribution companies (discom). In other words, the ministry wants the tariffs to reflect the full cost, including the impact of the change in fuel prices, of the energy purchased from the discontinuities.
Since the approval of the bill has been delayed, the ministry is trying to achieve this goal by modifying the current rules for the “timely recovery of the cost of purchasing energy by the distribution concessionaire”.
“The competent commission, within 90 days of the publication of these regulations, specifies a price adjustment formula for the recovery of costs deriving from changes in the price of fuel or the purchase cost. The impact on the cost (of electricity) due to this change must be automatically transferred to the consumer tariff on a monthly basis using the formula “, states the draft Electricity Regulation 2022.
“Section 176 of the Electricity Act 2003 empowers the Center to define the rules for the industry. As the amendment bill is overdue, the Center is amending the regulations to implement this anti-popular provision under the existing law “, All the Federation of Electrical Engineers of India president Shailendra Dubey She said.
The draft regulation change was circulated among states, regulators, industry bodies and other stakeholders on Friday for their comments by 9/11.
The infrequent and inadequate tariff review, driven by the political opportunity not to upset the voters, leaves a gap between the costs of energy supply and supply. But this is only one of the factors for the continuing record losses.
Nightclubs are the weakest link in the Indian energy sector. The poor financial data of the discoms are affecting their ability to pay generation companies on time, with a total overdue amount pegged at Rs 1.14 lakh crore at the moment.
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