The Government of India has introduced amendments to the Electricity (Late Payment Surcharge and Related Matters) Rules of 2022 to address the burgeoning demand for electricity across the nation. These changes aim to bolster the reliability of power supply for all consumers.
Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, highlighted a key amendment concerning surplus power within the declared generation capacity but not requisitioned by distribution companies. Some power generators were not offering this surplus power in the market, resulting in untapped power capacity at the national level.
To optimize power usage, power generators withholding surplus power will now forfeit the capacity or fixed charges corresponding to that surplus quantity. Additionally, the surplus power cannot be sold in the power exchange at a price exceeding 120% of the energy charge plus applicable transmission charges. This move aims to increase the utilization of surplus electricity by making it more likely to be purchased and utilized.
Moreover, amendments align the Rules with statutory provisions governing access to the national power grid. These changes facilitate distribution companies in swiftly regaining access to the national grid upon settling their outstanding dues, mitigating disruptions caused by payment defaults.
Minister Singh emphasized that the Electricity (Late Payment Surcharge and Related Matters) Rules, introduced in 2022, aimed to tackle cash flow challenges faced by generation and transmission companies while promoting timely payments across the power sector. Since their implementation, significant progress has been made in recovering outstanding dues. Outstanding bills have reduced from approximately Rs. 1.4 lakh crores in June 2022 to around Rs. 48,000 crores in February 2024.
