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Electricity (Amendment) Rules, 2022

17th January, 2023 POLITY AND GOVERNANCE

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  • The Union Power Ministry has released the gazette notification on the Electricity (Amendment) Rules, 2022.
    • The Electricity (Amendment) Rules, 2022 to amend the Electricity Rules, 2005.
  • The State Government of Kerala has objected to Rule 14.
    • Rule 14 mandates the State electricity regulatory commission to determine a price adjustment formula for automatically passing on the costs through the consumer tariff on a monthly basis.
      • It states that Fuel and power purchase adjustment surcharges shall be calculated and billed to consumers, automatically, without the approval of the regulatory authority.
    • Many State governments have argued that giving Discoms the freedom to automatically pass on the costs through the electricity bill will harm consumer interests.
  • Many states have criticized the amendment as it will dilute the power of the State Electricity Commission in fixing the surcharge.

Electricity (Amendment) Rules, 2022

  • The Electricity (Amendment) Bill, 2022 was introduced in Lok Sabha in August 2022. It has been referred to the Standing Committee on Energy for a detailed examination.
  • Main features of the bill
    • More than one power distributor can operate in an area. This will boost competition and provide more choices to consumers.
    • Mandatory fixing of minimum and maximum tariff ceilings to avoid predatory pricing by power distribution companies and to protect consumers.
    • Renewable purchase obligation (RPO) should not be below a minimum percentage prescribed by the Union government.
    • Strengthen payment security mechanisms by giving more powers to regulators.

Must Read: https://www.iasgyan.in/daily-current-affairs/power-sector