MoP issues draft Electricity (Amendment) Rules, 2023

The Ministry of Power (MoP) has issued the draft Electricity (Amendment) Rules, 2023 incorporating provisions for subsidy accounting and payment, and framework for financial sustainability.

As per the draft, the accounting of subsidy payable under sction 65 of the Act shall be done by the distribution licensee in accordance with the standard operating procedures issued by the central government. State commissions will issue quarterly reports for each discom in their jurisdiction, giving findings on the demands for subsidies raised by the discom in the quarter based on accurate accounts of the energy consumed by the subsidised category and consumer category-wise per unit subsidy declared by the states. Further, the actual payment of subsidy and the gap in subsidy due and paid will also be reported. The new draft rules also propose framework for financial sustainability, which states that the loss reduction trajectory to be adopted by the state commissions for tariff determination should be as per the trajectory agreed by the respective state governments and approved by the central government under any national scheme or programme. Further, the trajectory for both collection and billing efficiency for the discoms should be determined by the state commissions. The ministry has sought comments and suggestions on the draft by May 11, 2023.

Click here to read the rules