Electricity (Amendment) Rules, 2022
Why in news :
- The gazette notification on the Electricity (Amendment) Rules, 2022, came out on December 29.
- Ever since the Union Power Ministry shared the draft rules with the States last August, the CPI(M)led government in Kerala had fiercely objected to Rule 14 of the new rules.
- It permits distribution companies (Discoms) to automatically recover from consumers, on a monthly basis, the expenses arising out of variations in fuel price and power purchase costs.
More about new Electricity (Amendment) Rules, 2022 :
- The Centre introduced the Electricity (Amendment) Rules, 2022, to amend the Electricity Rules, 2005.
What is Rule 14 under the new rules?
- It states that Rule 14 of the Rules requires the State electricity regulatory commission to specify a price adjustment formula for automatically passing on the costs through the consumer tariff on a monthly basis.
- It also states that Fuel and power purchase adjustment surcharges shall be calculated and billed to consumers, automatically, without going through the regulatory approval process, on a monthly basis, according to the formula, prescribed by the respective State Commission.
Issues related to the Rule 14 :
- Endangers consumer interests :
- Giving Discoms the freedom to automatically pass on the aforementioned costs through the electricity bill endangers consumer interests.
- Unstable pricing mechanism :
- The amendment tries to introduce an “unstable pricing situation’’ in the power sector, similar to that of petrol and diesel prices.
- Consumers would be subjected, quite unfairly, to frequent price fluctuations.
- Dilution of the power of regulatory commission :
- It further observed that the crucial role played by the State Electricity Commission in fixing the surcharge would get diluted.
Syllabus : Prelims + Mains; GS3 – Power sector
