Uniform tariff discovered on Power Exchange for specific time block of the day: R. K. Singh

As per the provisions of the Electricity Act, 2003, the State Electricity Regulatory Commission determines the electricity tariff for retail sale of electricity to end consumers.

The Union Minister for Power and New & Renewable Energy has informed that the losses of DISCOMs have reduced substantially and the power sector has become viable because of a number of steps taken by the Government. These include:

Putting in place Rules to ensure payment for any subsidy declared by Government in time

Ensure that the tariffs are up to date.

Reducing the Late Payment Surcharge.

Ensuring that the GENCOs are paid on time.

Ensuring Energy Accounting and Energy Audit.

Putting in place revised prudential norms providing that no DISCOM or GENCO of a State Government will be able to get loans from PFC / REC if the DISCOM is making a loss, unless the DISCOM, with the approval of the State Government, works out a plan for loss reduction and files it with the Central Government, and adheres to that loss reduction trajectory.

Putting in place an incentive of an additional borrowing space of 0.5% of GSDP if the DISCOM puts in place loss reduction measures.

Provided for covered wire in high loss areas under DDUGJY and IPDS.

Provided that loss making DISCOMs will not be able to draw funds under any Power Sector Scheme of Government of India unless they put in place measures for loss reduction.

As a result of the above, the Aggregate Technical & Commercial (AT&C) losses – which were 21.61% in FY 17-18 have come down to 16.42% in FY 21-22.

As per the provisions of the Electricity Act, 2003, the State Electricity Regulatory Commission determines the electricity tariff for retail sale of electricity to end consumers.  Section 61 of the Electricity Act, 2003 and the Tariff Policy provide the guiding principles for determination of tariff. 

At present there is no proposal to implement uniform electricity pricing throughout the country.  However, Government is promoting competition through Power Exchanges.  Uniform tariff is discovered on the Power Exchange for a specific time block of the day.  Accordingly, to this extent, for the power procured by the distribution utilities from Power Exchanges, the price of electricity remains uniform, except in case of market splitting. 

This information has been given by the Union Minister for Power and New & Renewable Energy Shri R. K. Singh, in a written reply to a question, in Lok Sabha on December 7, 2023.

(With Inputs from PIB)