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

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.

 

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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.

Source: Explained | Why is Kerala opposing the new Electricity Rules?