The Ministry of Power has proposed to amend regulations for facilitating electricity producers to sell power to third party, which can reduce fixed costs and slash retail tariff for end consumers, according to a statement.

IN this regard, the Ministry of Power on Thursday circulated the draft Electricity (Late Payment Surcharge) Amendment Rules, 2021, seeking comments for the same, the power ministry said. The draft amendment rules are placed on the website of the Ministry of Power. The ministry proposes to take one more step towards reducing the burden of the distribution licensee in order to reduce the retail tariff for the electricity consumers, the statement said. It added that the power-generating companies are being given an option to sell power to third parties and recover their costs. To this extent, the fixed cost burden of the distribution licensee shall be reduced, the ministry stated.

If a distribution licensee has any payment, including late payment surcharge, outstanding after the expiry of seven months from the due date as prescribed in the PPA (power purchase agreement), the generating company may sell power to any consumer or any other licensee or power exchanges, for the period of such default, the statement said.

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