Electricity (Amendment) Bill: Government proposes automatic monthly change in electricity tariff based on fuel cost – Bharat Times Hindi News

According to the draft Electricity (Amendment) Rules, 2022, people’s electricity bill is likely to vary with changes in fuel cost, power purchase cost and transmission charges.

The draft suggested that Fuel and Power Purchase Adjustment Surcharge (FPPAS) means the cost of electricity supplied to consumers on account of changes in fuel cost, power purchase cost and transmission charges with reference to the cost of supply approved by the State Commission. growth . The FPPAS will be calculated and billed to the consumers automatically, without going through the regulatory approval process, on a monthly basis, as per the formula prescribed by the respective State Commission, subject to being corrected on an annual basis as decided by the State Commission.

The power ministry has sought comments from the National Solar Energy Federation of India, FICCI, ASSOCHAM, Electric Power Transmission Association, CMDs/MDs of all state government discoms/gencos and others on the draft rules by September 11.

This comes after the Electricity (Amendment) Bill was introduced in Parliament during the winter session of 2022. However, it was later referred to the Standing Committee for further deliberation amid protests from several opposition parties.

The draft also suggested that the surcharge payable by consumers seeking open access should not exceed 20 per cent of the average cost of supply.
The Ministry of Power said that the Appropriate Commission shall, within 90 days of the publication of these rules, specify a price adjustment formula for recovery of cost arising due to change in fuel price, or power purchase cost and cost effect. The reason for such change will be automatically passed on to the consumer on a monthly basis using this formula. Such monthly automatic adjustments shall be corrected by the Appropriate Commission on an annual basis.

The ministry said the distribution licensee would audit the subsidy payable by the central government as per the SOP and the state commission would review the resource adequacy for each distribution licensee every six months.
The draft also suggested that the authority would decide within 150 days the cases for giving consent for the hydro-electric generation plan and within 90 days to decide the consent to the off-the-river pumped storage plant scheme.

The developer/owner of the Energy Storage System (ESS) shall have the option to sell/lease/rent the storage space in whole or in part to a utility engaged in generation or transmission or distribution or to a load dispatch center. Standalone ESS will be an unlicensed activity similar to a generating company.

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