The Aryavarth Express
Agency(New Delhi): In a strategic move to meet the country’s escalating electricity demand, the Government of India has revised the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. These amendments are designed to enhance the overall reliability of electricity supply to consumers by ensuring the optimal use of the nation’s power generating capabilities.
Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, outlined the primary adjustment made to tackle the issue of unutilized power, highlighting that surplus electricity within the declared generation capacity, previously not made available by distribution companies, will now have to be offered in the power exchange by generating companies. This initiative targets the unused power capacity at the national level, aiming to mitigate it efficiently.
Under the new stipulations, power generators will lose their eligibility to claim capacity or fixed charges for any surplus power not offered. Moreover, this surplus power is to be offered in the power exchange at no more than 120% of the energy charge plus the applicable transmission charge. This measure is expected to significantly increase the chances of surplus electricity being bought and utilized effectively.
Additional amendments have been introduced to better align the rules with statutory guidelines concerning access to the national power grid. These changes aim to provide quicker restoration of grid access to distribution companies once they clear their outstanding dues, especially in cases where access was previously curtailed due to payment defaults.
The Minister remarked on the positive impact of the Electricity (Late Payment Surcharge and Related Matters) Rules introduced in 2022, which were initially implemented to address cash flow issues predominantly affecting generation and transmission companies and to encourage on-time payments within the power sector. Since their implementation, there has been notable progress in the settlement of outstanding dues, with the majority of distribution companies now following regular payment schedules. The total amount of unpaid bills has seen a substantial decrease from approximately Rs. 1.4 lakh crores in June 2022 to about Rs. 48,000 crores in February 2024.
The newly amended Electricity (Late Payment Surcharge and Related Matters) (Amendment) Rules, 2024, are accessible for review, marking a significant step towards ensuring a more reliable and efficiently utilized power supply across India.