The Ministry of Power has issued a proposal incorporating new modifications to the revised proposal for amendments to the Electricity Act 2003. In September 2018, the Ministry of Power had issued revised proposal for amendments to the Electricity Act 2003, in which it had included ample provisions for renewable energy generation and distribution. The new modifications are related to simplification of tariff categories and rationalization of retail tariff. Through these modifications, the Ministry of power proposes incorporating tariff categories on sanctioned load and consumption basis. In the proposal, the government has introduced many novel features like adoption of a uniform tariff structure across all states and consumer categories. It has also recommended imposition of penalty for exceeding the approved load in any given month. The new proposal is open for comments up to November 5, 2018. Key Points Proposed The Ministry of Power believes that tariff structures across states in India have become very complex and there is a need to simplify, harmonize and rationalize the tariff structure across states. The question of tariff for EV charging stations has been taken care of in the proposed new modifications, this is expected to usher in EV adoption across India. Prior to this, Ministry of Power had issued draft amendments to Tariff Policy 2016 keeping in view the changes and dynamic nature of the power sector. When contacted, an official with the Ministry of Power said, “We are focused on removing the complexities of Electricity Act and Tariff Policy. It is paramount for 24*7 power to all, by ensuring smart governance and providing access to affordable electricity for all households.” “Power demand is now going to amplify due to the efforts for electrification. Not all users even in a city utilize the same amount of energy, the consumption levels are varied, and we have tried to make our policy simple by focusing it around consumption of individual consumers. Earlier, consumers were widely classified into domestic, industrial, institutional, agricultural and commercial, due to this the benefit of low cost of power could not be provided to the one’s in need. Now we will be able to do so,” added the official. Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.
India's ministry of power has announced a new scheme that aims to streamline and harmonise the country's varying renewable energy power structures. The government is planning on setting up an independent body called National Renewable Energy Authority (NREA) which will be responsible for regulating all aspects related to solar energy. The move follows concerns that the contrasting regulations in different states have become overly complex, restricting innovation and deterring consumers from taking up the technology.