The Ministry of Power (MoP) has amended the Electricity (Late Payment Surcharge and Related Matters) (Amendment) Rules, 2024 in order to ensure adequate supply of electricity to meet the growing demand in the country.
The amendments will enhance the reliability of power supply for all consumers. A key amendment which has been made is related to surplus power which is within the declared generation capacity but not requisitioned by distribution companies. Some power generators were not offering this surplus power in the market, thus resulting in unused power capacity at national level. To address this issue and optimise the use of available power, power generators who do not offer their surplus power will now not be eligible to claim capacity or fixed charges corresponding to that surplus quantum. Additionally, this surplus power cannot be offered for sale in the power exchange, at a price of more than 120 per cent of energy charge plus applicable transmission charge. This will increase the likelihood of the surplus electricity getting purchased and utilised. Furthermore, amendments have been made to align the rules with statutory provisions related to accessing the national power grid. These amendments facilitate distribution companies facing curtailment of access due to payment defaults, in getting quicker restoration of access to the national grid once they settle their outstanding dues.
