New Power Tariff Policy Supports Low Rates
The Union Cabinet on Wednesday approved amendments to the power tariff policy that aims to tighten regulations for setting rates and promote clean energy. The policy, which is governed by the Electricity Act, was under revision since 2011. It has nearly 30 major amendments and a few minor ones, aimed at ensuring uninterrupted supply to all consumers by 2021-22. The policy allows cost pass-through for use of imported and e-auctioned coal that producers of power in projects awarded through auctions have to use because of a shortfall in contracted supply by Coal India. The central commission has been given the right to introduce norms for ancillary services necessary for maintaining power quality, reliability and security of the grid, including the method of sharing charges.