The Ministry of Power has introduced a comprehensive set of amendments to the Electricity Rules, 2005, referred to as the Electricity (Third Amendment) Rules, 2023. These amendments mark a pivotal moment in the regulation of India’s electricity sector, aiming to instigate vital changes. Upon publication in the Official Gazette, these amendments will come into full force, promising profound ramifications for stakeholders across the sector.
Central to these amendments is the addition of a new sub-rule, which mandates that the Central Electricity Authority (CEA) verifies the captive status of generating plants spanning multiple states. This verification process aligns with the government’s drive to ensure regulatory efficacy and fairness.
The revisions underscore the government’s unwavering commitment to enhancing efficiency, clarity, and fairness within the electricity sector. By introducing a mechanism to assess the status of captive generating plants operating across state boundaries, the government aims to promote uniformity in enforcement.
In a bid to promote transparency in subsidy management, a new requirement has been instituted. State Commissions will issue quarterly reports for each distribution licensee within their jurisdiction. These reports will detail whether subsidy demands were raised by the distribution licensee in the respective quarter, considering energy consumption by subsidized categories and consumer categories. They will also include information on per-unit subsidy declarations by the State Government, actual subsidy payments following section 65 of the Act, and discrepancies in subsidy due and paid.
Distribution licensees must submit these quarterly reports within 30 days following the end of the respective quarter. The State Commission, in turn, shall review and, if necessary, correct these reports within 30 days of their submission.
Additionally, the amendments emphasize alignment with national schemes or programs approved by the Central Government. The Aggregate Technical and Commercial (AT&C) loss reduction trajectory approved by State Commissions for tariff determination will follow the trajectory agreed upon by the respective State Governments and endorsed by the Central Government.
These amendments are poised to impact various stakeholders within the electricity industry significantly. The overhaul of terminology, removal of certain provisions, and expanded definitions are expected to simplify regulations and enhance transparency in the sector. The introduction of a verification procedure for captive-generating plants spanning multiple states demonstrates the government’s commitment to consistent enforcement of regulations nationwide.
The Ministry of Power’s proactive approach to amending the Electricity Rules seeks to cultivate an environment conducive to the growth of the electricity industry while safeguarding the interests of producers and consumers alike. As these amendments take effect, stakeholders in the electricity sector must adapt to this evolving regulatory landscape and ensure compliance with the revised rules. The reforms are a substantial step toward modernizing India’s electricity sector and promoting its sustainable development.
For more information, view the official document: