MoP issues draft rules for change in law, must-run status compensation

The Ministry of Power (MoP) has issued the Draft Electricity (Change in Law, Must-run status and Other matters) Rules 2020. The draft lays out rules to allow quick compensation to power plants for additional costs arising due to change in law events or modifications in consents or licenses.

As per the rules, the pass through in tariffs due to change in law will be implemented in an expeditious manner within 30 days. The draft has provided for 75 per cent of agreed power purchase agreements (PPA) tariff in case compensation is not provided for in the PPA. The rules also propose that renewable power plants, if served curtailment notices by discoms 24 hours in advance, will mandatorily sell that unscheduled electricity in power exchanges. Renewable power plants already enjoy must-run status as per the Indian Electricity Grid Code (IEGC) and are exempted from curtailment. In the event of curtailment for technical reasons, they are eligible for compensation as per their power purchase agreements (PPA).The draft has been circulated for comments by October 22, 2020.


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