Introduction: The Ministry of Power, New Delhi, has issued a crucial notification on January 10, 2024 – G.S.R. 36 (E). The Electricity (Amendment) Rules, 2024, are introduced under the authority of Section 176 of the Electricity Act, 2003, to further amend the Electricity Rules, 2005.
1. Rule 21 – Dedicated Transmission Lines:
- Generating companies, captive plants, Energy Storage Systems, or consumers with specific loads are exempt from licensing for dedicated transmission lines.
- Compliance with Act regulations, technical standards, and guidelines is mandatory.
2. Rule 22 – Open Access Charges:
- Wheeling charges computation formula is introduced for annual revenue requirements.
- Charges for using State Transmission Utility network for short-term access are capped at 110% of long-term or GNA charges.
- Additional surcharge limitations for Open Access Consumers are defined, ensuring a linear reduction over four years.
3. Rule 23 – Tariff Reflectivity and Gap Handling:
- Tariffs must be cost-reflective; no gap is allowed between approved Annual Revenue Requirement and estimated revenue, except under natural calamity conditions.
- Any existing gap is limited to three percent and must be liquidated in a maximum of seven yearly installments.
Conclusion: The Electricity (Amendment) Rules, 2024, signify a pivotal shift in regulating the electricity sector. The emphasis on dedicated transmission lines, open access charges, and tariff reflectivity aligns with ensuring efficiency, fairness, and sustainability in power transmission and distribution. Stakeholders must familiarize themselves with these amendments to comply with the evolving regulatory landscape.
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MINISTRY OF POWER
NOTIFICATION
New Delhi, the 10th January, 2024
G.S.R. 36 (E).—In exercise of the powers conferred by Section 176 of the Electricity Act, 2003 (36 of 2003), the Central Government hereby makes the following rules, further to amend the Electricity Rules, 2005, namely:
1. (1) These rules may be called the Electricity (Amendment) Rules, 2024
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Electricity Rules, 2005 (hereinafter referred to as the said rules), the existing rule 21 shall be re- numbered as rule 24 and before the said rule as so renumbered, the following rules shall be inserted, namely:-
“21. Establishment, operation and maintenance of dedicated transmission lines.– A generating company or a person setting up a captive generating plant or an Energy Storage System or a consumer having load of not less than twenty five Megawatt in case of Inter State Transmission System and ten Megawatt in case of Intra-State Transmission System shall not be required to obtain license under the Act for establishing, operating or maintaining a dedicated transmission line to connect to the grid, if such company or person or consumer complies with the Regulations, technical standards, guidelines and procedures issued under the provisions of the Act.
22. Open Access Charges.– (1) Wheeling charges.– Wheeling charges shall be computed as per following formula:
Wheeling Charge = Annual Revenue Requirement towards wheeling
Energy wheeled during the year
(2) Charges for using network of State Transmission – The charges for using State Transmission Utility network by the consumers availing short-term open access or Temporary-GNA, as the case may be shall not be more than one hundred ten per cent of the charges levied on consumers using State Transmission Utility network on long-term basis or on General Network Access basis, as the case may be.
(3) Additional Surcharge.– The additional surcharge levied on any Open Access Consumer shall not be more than the per unit fixed cost of power purchase of the distribution licensee concerned:
Provided that for a person availing General Network Access or Open Access, the additional surcharge shall be linearly reduced from the value in the year in which General Network Access or Open Access was granted so that, if it is continued to be availed by this person, the additional surcharge shall get eliminated within four years from the date of grant of General Network Access or Open Access:
Provided further that the additional surcharge shall not be applicable for Open Access Consumer to the extent of contract demand being maintained with the distribution licensees:
Provided also that the additional surcharge shall be applicable only for the Open Access Consumers who are or have been consumers of the concerned Distribution licensee.
Explanation.– For the purpose of this rule, General Network Access and Temporary-GNA shall have the same meaning as defined in the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022 as amended from time to time.
23. Gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff.– The tariff shall be cost reflective and there shall not be any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff except under natural calamity conditions:
Provided that such gap, created if any, shall not be more than three percent of the approved Annual Revenue Requirement:
Provided further that such gap along with the carrying costs at the base rate of Late Payment Surcharge as specified in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, as amended from time to time shall be liquidated in maximum three numbers of equal yearly installments from the next financial year:
Provided also that any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff existing on the date of notification of these rules, along with the carrying costs at the base rate of Late Payment Surcharge as specified in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, as amended from time to time shall be liquidated in maximum seven numbers of equal yearly installments starting from the next financial year.”
[F. No. 23/7/2023-R&R]
PIYUSH SINGH, Jt. Secy.
Note: The principal Rules were published in the Gazette of India, Part-II, Section 3, Sub-section (i) vide number G.S.R 379 (E), dated the 8th June, 2005 and amended vide number G.S.R. 667 (E), dated 26th October, 2006 and vide number G.S.R. 817 (E), dated 31st December, 2020 and vide number G.S.R. 911 (E), dated 29th December, 2022 and vide number G.S.R 466 (E), dated the 30th June, 2023 and vide G.S.R. 558(E) 26th July, 2023 and vide G.S.R 649 (E), dated the 1st September, 2023.
