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Cabinet nod for Electricity Tariff Policy amendment

The Union Cabinet, in its meeting held on January 20, approved the proposal of the Ministry of Power for amendments to the Electricity Tariff Policy.

An official release said the amendments will ensure achieving the objectives of UDAY (Ujwal DISCOM Assurance Yojana) with a focus on 4 Es: Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensuring financial viability.

The amendments will benefit power consumers in multiple ways while reducing the cost of power through efficiency, spur renewable power growth for a cleaner environment and protect India’s energy security, the release said.

After the amendment, 24X7 supply will be ensured to all consumers and state governments and regulators will devise a power supply trajectory to achieve this, the release said.

In addition, power will be provided to remote unconnected villages through micro grids with provision for purchase of power into the grid as and when the grid reaches there and the amendment will also ensure affordable power for people near coal mines by enabling procurement of power from washery rejects-based plants.

The amendment will also allow reduction of power cost to consumers through expansion of existing power plants, while benefits from sale of un-requisitioned power will be shared that will allow reduction in overall power costs.

The amendment provides for promotion of renewable energy and energy security as 8% of electricity consumption, excluding hydro power, shall be from solar energy by March 2022.

Source: ICMW