March 2, 2024: The government has amended the Electricity (Late Payment Surcharge and Related Matters) Rules of 2022 in order to ensure adequate supply of electricity to meet the growing demand in the country. The amendments will enhance the reliability of power supply for all consumers.
See also: Govt amends electricity rights of consumers rules to empower users
Speaking about the amendments, Union Minister for Power and New & Renewable Energy, RK Singh stated that a key amendment which has been made is related to surplus power which is within the declared generation capacity but not requisitioned by distribution companies. The minister said that some power generators were not offering this surplus power in the market, thus resulting in unused power capacity at national level.
To address this issue and optimise the use of available power, power generators who do not offer their surplus power will now not be eligible to claim capacity or fixed charges corresponding to that surplus quantum. Additionally, this surplus power cannot be offered for sale in the power exchange, at a price of more than 120% of energy charge plus applicable transmission charge. This will increase the likelihood of the surplus electricity getting purchased and utilised.
Furthermore, amendments have been made to align the rules with statutory provisions related to accessing the national power grid. These amendments facilitate distribution companies facing curtailment of access due to payment defaults, in getting quicker restoration of access to the national grid once they settle their outstanding dues.
The Electricity (Late Payment Surcharge and Related Matters) Rules were introduced in 2022 to tackle cash flow challenges faced mainly by generation companies and transmission companies and to promote timely payments across the power sector. Since notification, there has been significant progress in recovering outstanding dues, with most distribution companies now adhering to regular payment schedules. The total unpaid bills have reduced from around Rs 1.4 lakh crore in June 2022 to around Rs 48,000 crore in February 2024.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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