MoP notifies new rules under the Electricity Act, 2003

The Ministry of Power (MoP) has notifiedthe rulesfor the sustainability of the electricity sector and promotion of clean energy to fulfil India’s commitment towards climate change.

The rules that have been notified by the MoP under Electricity Act, 2003 in the interest of stakeholders are Electricity (Timely recovery of costs due to Change in Law) Rules, 2021 and Electricity (Promotion of generation from renewable sources of energy by addressing Must Run and other matters) Rules, 2021. The rules would help in timely recovery of the costs which iscrucialfor the power sector as it largely depends upon timely payments. The rules also provide that a must-run power plant shall not be subjected to curtailment or regulation of generation or supply of electricity on account of merit order dispatch or any other commercial consideration unless during the event of any technical constraint in the electricity grid or for reasons of security of the electricity grid. The rules also provide for the intermediary procurer to purchase electricity for distribution licensees.