MoP notifies Electricity (Second Amendment) Rules, 2023

The Ministry of Power (MoP) has notified Electricity (Second Amendment) Rules, 2023.

As per the rules, the accounting of subsidy payable under section 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 rules also set framework for financial sustainability, according to which the aggregate technical and commercial loss reduction trajectory to be approved by the state commissions for tariff determination should be in accordance with 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.