The Ministry of Power circulated draft Electricity (Late Payment Surcharge) Amendment Rules, 2021, through it seeks to amend the norms for facilitating electricity generators to sell power to third parties. The proposed change can reduce fixed costs and cut retail tariff for electricity consumers. The ministry proposes to further reduce the burden of the distribution licensee (discoms) in order to cut the retail tariff for the electricity consumers. It noted that generating companies are being given an option to sell power to a third party and recover their cost. To this extent, the fixed cost burden of the distribution licensee will be reduced, the Power Ministry added. The Power Ministry noted that according to the draft rules, if a distribution licensee has any payment, including late payment surcharge, outstanding after the expiry of seven months from the due date as prescribed in the PPA (power purchase agreement), the generating company may sell power to any consumer or any other licensee or power exchanges, for the period of such default.
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