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Core Purpose

Notification of the Electricity (Amendment) Rules, 2024, inserting new rules on dedicated transmission lines, Open Access Charges and the Annual Revenue Requirement gap into the Electricity Rules, 2005.

Detailed Summary

The Ministry of Power issued G.S.R. 36(E) dated 10th January 2024, in exercise of powers under Section 176 of the Electricity Act, 2003 (36 of 2003), notifying the Electricity (Amendment) Rules, 2024, effective from the date of publication in the Official Gazette. The amendment renumbers existing rule 21 of the Electricity Rules, 2005 as rule 24 and inserts new rules 21 to 23: rule 21 exempts generating companies, captive generating plants, Energy Storage Systems, or consumers with load of at least 25 MW (Inter-State) or 10 MW (Intra-State) from licensing requirements for dedicated transmission lines that comply with applicable Regulations; rule 22 prescribes the formula for Wheeling Charges, caps charges for State Transmission Utility network use by short-term/Temporary-GNA consumers at 110% of long-term/General Network Access basis charges, and caps Additional Surcharge at the per-unit fixed cost of power purchase with a linear phase-out over four years; and rule 23 requires tariffs to be cost-reflective, limiting any gap between approved Annual Revenue Requirement and estimated annual revenue to 3%, to be liquidated over a maximum of three yearly instalments (or seven instalments for pre-existing gaps) with carrying costs per the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. The principal Electricity Rules, 2005 were published vide G.S.R. 379(E) dated 8th June 2005 and previously amended vide G.S.R. 667(E), G.S.R. 817(E), G.S.R. 911(E), G.S.R. 466(E), G.S.R. 558(E) and G.S.R. 649(E). The notification (File No. 23/7/2023-R&R) was signed by Piyush Singh, Joint Secretary.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-11012024-251281 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 31] NEW DELHI, THURSDAY, JANUARY 11, 2024/PAUSHA 21, 1945 244 GI/2024 MINISTRY OF POWER NOTIFICATION New Delhi, the 10th January, 2024 G.S.R. 36 (E).—In exercise of the powers conferred by Section 176 of the Electricity Act, 2003 (36 of 2003), the Central Government hereby makes the following rules, further to amend the Electricity Rules, 2005, namely: 1. (1) These rules may be called the Electricity (Amendment) Rules, 2024. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Electricity Rules, 2005 (hereinafter referred to as the said rules), the existing rule 21 shall be re- numbered as rule 24 and before the said rule as so renumbered, the following rules shall be inserted, namely:- "21. Establishment, operation and maintenance of dedicated transmission lines.- 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 twenty five Megawatt in case of Inter State Transmission System and ten Megawatt 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. 22. Open Access Charges.- (1) Wheeling charges.- Wheeling charges shall be computed as per following formula: Wheeling Charge = Annual Revenue Requirement towards wheeling Energy wheeled during the year (2) Charges for using network of State Transmission Utilities.- The charges for using State Transmission Utility network by the consumers availing short-term open access or Temporary-GNA, as the case may be shall not be more than one hundred ten per cent of the charges levied on consumers using State Transmission Utility network on long-term basis or on General Network Access basis, as the case may be. (3) Additional Surcharge.– 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: Provided further that the additional surcharge shall not be applicable for Open Access Consumer to the extent of contract demand being maintained with the distribution licensees: Provided also that the additional surcharge shall be applicable only for the Open Access Consumers who are or have been consumers of the concerned Distribution licensee. Explanation.- For the purpose of this rule, General Network Access and Temporary-GNA shall have the same meaning as defined in the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022 as amended from time to time. 23. Gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff.– 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: Provided that such gap, created if any, shall not be more than three percent of the approved Annual Revenue Requirement: Provided further that such gap along with the carrying costs at the base rate of Late Payment Surcharge as specified in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, as amended from time to time shall be liquidated in maximum three numbers of equal yearly installments from the next financial year: Provided also that any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff existing on the date of notification of these rules, along with the carrying costs at the base rate of Late Payment Surcharge as specified in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, as amended from time to time shall be liquidated in maximum seven numbers of equal yearly installments starting from the next financial year." [F. No. 23/7/2023-R&R] PIYUSH SINGH, Jt. Secy. Note: The principal Rules were published in the Gazette of India, Part-II, Section 3, Sub-section (i) vide number G.S.R 379 (E), dated the 8th June, 2005 and amended vide number G.S.R. 667 (E), dated 26th October, 2006 and vide number G.S.R. 817 (E), dated 31st December, 2020 and vide number G.S.R. 911 (E), dated 29th December, 2022 and vide number G.S.R 466 (E), dated the 30th June, 2023 and vide G.S.R. 558(E) 26th July, 2023 and vide G.S.R 649 (E), dated the 1st September, 2023.

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