Proposed Amendments To Electricity Rules Seek Timely Payments And Secure Supply

In a significant move aimed at streamlining the electricity payment process, the central government is proposing amendments to the Electricity (Late Payment Surcharge and Related Matters) Rules 2022. The new rules, titled the Electricity (Late Payment Surcharge and Related Matters) (Amendment) Rules 2023, are set to come into effect upon their publication in the official gazette.

The primary focus of these amendments is to address non-payment issues by distribution licensees or other users of the transmission system. In cases where dues remain unpaid even after two and a half months from the presentation of the bill by the generating company or transmission licensee, certain regulations will come into play to ensure a fair and efficient power supply system.

When a distribution licensee or another user of the transmission system fails to settle dues within the stipulated time, the power supply to the defaulting entity will face regulation. This includes short-term access or temporary General Network Access (GNA) for the sale and purchase of electricity through short-term contracts or power exchanges.

Under exceptional circumstances for grid security, the National Load Dispatch Centre may temporarily review the regulation of short-term access or temporary GNA, provided reasons are recorded in writing. If dues remain unpaid for three and a half months, in addition to the regulation of short-term access, medium-term open access, long-term access, or temporary GNA for the sale and purchase of electricity through contracts other than short-term contracts will be regulated by 10%.

The reduction or withdrawal of long-term access, medium-term open access, or temporary GNA will be progressive, increasing by 10% for each month of default. Upon payment of outstanding dues, the regulations will be lifted within two days. The National Load Dispatch Centre will issue detailed procedures to implement these rules, ensuring a transparent and efficient process.

Distribution licensees are required to initiate power requisition schedules at least two hours before the end of the time for placing proposals or bids in the day-ahead market. Failure to do so will prompt generating companies to offer un-requisitioned surplus power in the power exchange(s). The offered power should not exceed 120% of its determined or adopted energy charge by the appropriate commission.

Failure to offer un-requisitioned surplus power in the exchange(s) will result in it not being considered available for computing the payment of fixed charges. This mechanism ensures that unutilized power is appropriately accounted for in the market. In summary, these proposed amendments aim to create a more accountable and efficient electricity payment system, providing clear guidelines for addressing non-payment issues while maintaining a balance between the interests of generating companies and distribution licensees. The emphasis is on timely payments and securing the power supply chain for a robust and sustainable energy ecosystem.

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