It seems that the Indian Government is considering to amend the Electricity Act 2003, which is the governing framework for the Indian Power Sector.
The Electricity Act has brought together laws relating to generation, transmission, distribution, trading of electricity etc.
However, amidst the crisis being faced by the Indian Power Sector, the Government seems to amend certain aspects of the Electricity Act. As per the government officials, the amendments will be mostly limited to the governance, accountability and implementation issues.
A high level advisory panel committee, headed by the Hon'ble Power Minister are looking into possible amendments needed in the Electricity Act and has already made various suggestions, including mechanism to pass through higher fuel costs to consumers.
One of the suggestions made by the committee is to have a formula which would ensure that variation in fuel and power purchase cost is recovered by the generators.
A change in the Act in this regard would help in clarifying the need for surcharge formula which at minimum covers various costs, including mix variance that are to be passed through to consumers in a reasonable time-frame.
Many power plants are facing issues related to rise in fuel costs, especially pricier overseas coal.
Additional Reading...
Welcome move.. as long as it takes us one step forward
ReplyDelete