Electricity (Amendment) Rules, 2022 | UPSC Current Affairs

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The Union Power Ministry has released the gazette notification on the Electricity (Amendment) Rules, 2022.
- The Electricity (Amendment) Rules, 2022 to amend the Electricity Rules, 2005.
The State Government of Kerala has objected to Rule 14.
- Rule 14 mandates the State electricity regulatory commission to determine a price adjustment formula for automatically passing on the costs through the consumer tariff on a monthly basis.
  - It states that Fuel and power purchase adjustment surcharges shall be calculated and billed to consumers, automatically, without the approval of the regulatory authority.
- Many State governments have argued that giving Discoms the freedom to automatically pass on the costs through the electricity bill will harm consumer interests.
Many states have criticized the amendment as it will dilute the power of the State Electricity Commission in fixing the surcharge.

Electricity (Amendment) Rules, 2022

The Electricity (Amendment) Bill, 2022 was introduced in Lok Sabha in August 2022. It has been referred to the Standing Committee on Energy for a detailed examination.
Main features of the bill
- More than one power distributor can operate in an area. This will boost competition and provide more choices to consumers.
- Mandatory fixing of minimum and maximum tariff ceilings to avoid predatory pricing by power distribution companies and to protect consumers.
- Renewable purchase obligation (RPO) should not be below a minimum percentage prescribed by the Union government.
- Strengthen payment security mechanisms by giving more powers to regulators.

Must Read: https://www.iasgyan.in/daily-current-affairs/power-sector