Electricity (Amendment) Rules, 2024

  • The Ministry of Power (MoP) on January 10, 2024 notified the Electricity (Amendment) Rules, 2024 (Amendment Rules) under Section 176 of the Electricity Act, 2003 (Act). By way of the Amendment Rules, the MoP has amended the Electricity Rules, 2005 (Principal Rules).
  • Rule 21 introduced by the Amendment Rules provides that a generating company or a person setting up a captive generating plant or an Energy Storage System or a consumer having load of not less than 25 MW in case of Inter-State Transmission System and 10 MW in case of Intra-State Transmission System shall not be required to obtain license under the Act for establishing, operating or maintaining a dedicated transmission line to connect to the grid, if such company or person or consumer complies with the regulations, technical standards, guidelines and procedures issued under the provisions of the Act.
  • Wheeling charges shall be computed as per following formula: Annual Revenue Requirement towards wheeling /Energy wheeled during the year.
  • The additional surcharge levied on any Open Access Consumer shall not be more than the per unit fixed cost of power purchase of the distribution licensee concerned. Provided that for a person availing General Network Access or Open Access, the additional surcharge shall be linearly reduced from the value in the year in which General Network Access or Open Access was granted so that, if it is continued to be availed by this person, the additional surcharge shall get eliminated within four years from the date of grant of General Network Access or Open Access.
  • The tariff shall be cost reflective and there shall not be any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff except under natural calamity conditions.

Draft Electricity (Late Payment Surcharge and Related Matters) Amendment Rules, 2023

  • The Ministry of Power (MoP) on December 14, 2023 notified the Draft Electricity (Late Payment Surcharge and Related Matters) (Amendment) Rules, 2023 (Draft Rules 2023) to address circumstances of non-payment of dues by the distribution licensee or other user of the transmission system even after two and half months from the presentation of the bill by the generating company or transmission licensee or trading licensee, or in case of default in the payment of installments. Key aspects:
    • If dues are not settled within two and half months after bill presentation, or there is a default on instalment payments under Rule 5, power supply to defaulting entity will be subject to a structured regulation.
    • The said proposed amendment will be applicable to all types of arrangements such as shortterm, long-term, temporary GNA with the degree of restriction increasing progressively by ten percent each month for the duration of the default. This structured approach is designed to encourage entities to clear their dues promptly to avoid stringent penalties.
    • Two days clear timeline for the restoration of the power supply following the settlement of outstanding dues is provided in the Draft Rules 2023.
    • The National Load Despatch Centre (NLDS) has been given the authority to elaborate detailed procedures to implement these rules, ensuring uniform compliance across the sector.

Draft Electricity (Rights of Consumers) Second Amendment Rules 2023

  • The Ministry of Power (MoP) in exercise of the powers conferred under Section 176 of the Electricity Act 2003 on December 13, 2023 notified the Draft Electricity (Rights of Consumers) Second Amendment Rules 2023 (Draft Amendment Rules 2023). The Draft Amendment Rules 2023 proposes to amend the Electricity (Rights of Consumer) rules, 2020 (Principal Rules). The aim of the Amendment Rules 2023 to bring crucial changes in the regulations governing electricity rights for consumers.
  • Key changes proposed by the Draft Amendment Rules 2023 are follows:
    • The distribution licensee shall provide individual connection for supply of Electricity to owner(s) or occupier(s) of any premise in a Group Housing Society or Residential Colony or Resident Welfare Association (RWA) or similar body registered with Appropriate Government, on their request, in the manner prescribed by the Appropriate Commission.
    • The distribution licensee shall provide a separate connection for supply of Electricity for Electric Vehicle (EV) charging system, if requested by the individual consumer or Group Housing Society or residential colony or Resident Welfare Association (RWA) or similar body registered with Appropriate Government.
    • Testing of meters shall be done by the distribution licensee within a period as may be specified by the Commission, not exceeding thirty days, of receipt of the complaint from the consumer about their meter readings not being commensurate with his consumption of electricity.
    • No technical feasibility study shall be required for installation of rooftop solar up to 1 O kW.
    • The consumer shall submit the installation certificate to the distribution licensee. The licensee shall complete signing of connection agreement, installation of meter and successful commissioning of the solar PV system within the timelines specified by the Commission which shall not be more than fifteen days from the date of submission of the installation certificate.

Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) (First Amendment) Regulations, 2023

  • The Maharashtra Electricity Regulatory Commission (MERC), in exercise of the powers conferred under Section 61 and Section 86(3) read with Section 181 of the Electricity Act, 2003 (36 of 2003) and in pursuance to Clause 5.3 of the Tariff Policy, 2016 has amended the Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) Regulations, 2019 (Principal Regulations). MERC by way of Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) (First Amendment) Regulations, 2023 (Amendment Regulations, 2023) has introduced key changes and additions such as updated definitions for terms like 'Eligible Consumer', new concepts like 'Gross Metering' and 'Group Net Metering'. The said Amendment Regulations 2023 revises existing regulations to align better with the Electricity (Rights of Consumers) Rules 2020 and its subsequent amendment in 2021.
  • Key aspects:
    • Eligible Consumer definition (Regulation 2.1(j)): Amended to clarify that an Eligible Consumer, intending to use a Renewable Energy Generating System, is subject to a 5 MW limit in Net Metering or the consumer's Contract Demand/Sanction Load, whichever is lower. For other arrangements, the limit is the Contract Demand/Sanctioned Load.
    • Introduction of Prosumer (Regulation 2.1(t)(a)): A new category defined as a person who consumes and injects electricity into the grid using the same point of supply.
    • Distribution Licensee adaptation: Emphasizes the need for Distribution Licensees to adapt to new technical requirements and billing systems while balancing consumer interests with operational efficiency.
    • Introduction of Gross Metering and Group Net Metering (Regulations 2.1(k)(a), 2.1(k)(b), 2.1(k)(c)): Defines terms such as Gross Metering and Group Net Metering. Gross Metering involves separate accounting for total renewable energy generated and consumed, with the Distribution Licensee purchasing surplus energy. Group Net Metering allows surplus energy to be adjusted against multiple service connections of the same consumer.
    • Regulation 11(A) emphasis: Highlights the importance of Regulation 11(A), focusing on the accounting of exported and imported electricity, meter reading processes, billing information, and conditions for accepting power over the useful life of the Renewable Energy Generating System.
    • Modification of existing regulations (Regulations 3.1(c), 3.1(d)): Amendments to existing regulations, emphasizing gross metering arrangements and grid-connected renewable energy systems.
    • Net Metering Arrangement (Regulation 8.3): Mandates single or three-phase Net Meters at the point of interconnection, with provisions for Gross Metering.
    • Check Meter for Gross Metering (Regulation 8.11): Requires an additional Check Meter for Renewable Energy Generating Systems under Gross Metering Arrangement.
    • Application procedure and compensation (Regulation 9.5): Outlines the procedure for connecting a system, with compensation provisions for delays.
    • Model Gross Metering Connection Agreement (Regulation 10.3(a)): Introduces a model agreement for Gross Metering, subject to modification by the Distribution Licensee.
    • Group Net Metering (Regulation 11.9): Defines energy accounting and settlement for surplus units, providing flexibility and exempting wheeling charges until rooftop solar capacity reaches 5000 MW.
    • Net Billing (Regulation 11(A)): Specifies detailed energy accounting and settlement for exported and imported electricity, with a formula for consumer billing.
    • Useful Life and Gross Metering (Regulation 11.5(A)): Links the acceptance of power under Gross Metering to the useful life of the Renewable Energy Generating System.
    • Renewable Purchase Obligation (RPO) (Regulation 14): Details how electricity consumed under different arrangements contributes to RPO compliance for consumers and Distribution Licensees.
    • Connection Agreements (Annexure-1, Clause 1(h)): Emphasizes the need for Net Metering, Net Billing, or Gross Metering Connection Agreements.

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