What is Rule 14 in the new Electricity (Amendment) Rules, 2022?

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What is Rule 14 in the new Electricity (Amendment) Rules, 2022? Blog Image

Overview:

The gazette notification on the Electricity (Amendment) Rules, 2022, came out recently and the Kerala government had fiercely objected to Rule 14 under the rules.

What does Rule 14 say?

  • 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.
  • It 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.
  • 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.

 


Q1) What are DISCOMS?

DISCOM stands for Distribution Companies. They get electricity from the transmission and manages the further network and distribute the electricity to the consumers.

SourceExplained | Why is Kerala opposing the new Electricity Rules?