11th to 21st January 2024 - New rules to facilitate Bulk consumers and Energy Storage Systems for getting connected to the Grid easily and at faster pace Flashcards
Who introduced the new rules to facilitate Bulk consumers and Energy Storage Systems?
Ministry of Power under the provisions of Electricity Act 2003
What is the purpose of the new Electricity (amendment) Rules, 2024?
To promote ease of doing business and ensure financial sustainability in the power sector.
Under the new rules, who is exempted from obtaining a license for establishing a dedicated transmission line?
Generating companies, Energy Storage Systems, or consumers meeting specific load requirements.
What are the specific load requirements for exemption from a license?
25 Megawatt for Inter State Transmission System and 10 Megawatt for Intra-State Transmission System.
How will the additional surcharge for Open Access consumers be reduced?
The surcharge will be linearly reduced and eliminated within four years from the date of grant.
Who is exempt from paying the additional surcharge?
New consumers who have never been customers of the concerned Distribution Licensee.
What does ‘cost reflective tariff’ mean?
The tariff is based on the actual cost of providing electricity.
What is the maximum allowable gap between approved Annual Revenue Requirement and estimated annual revenue?
3% under normal conditions, except for natural calamities.
How will any revenue gap be liquidated?
In maximum three or seven equal yearly installments, depending on when the gap occurred.
What is the expected benefit of the new rules for distribution companies?
Reduced losses and improved financial viability, leading to better services for consumers.
For what purposes can a license exemption be granted for transmission line establishment?
Setting up a captive generating plant, establishing an Energy Storage System, or meeting bulk consumer load requirements.
What is the difference between Inter State Transmission System and Intra-State Transmission System in the context of load requirements?
Inter State Transmission System refers to the power grid crossing state boundaries (requiring a minimum load of 25 Megawatts for exemption), while Intra-State Transmission System refers to the grid within a state (requiring a minimum load of 10 Megawatts for exemption).
What are the main components that must be aligned with the Electricity Act for a company/person/consumer to be eligible for a transmission line license exemption?
They must comply with the Regulations, technical standards, guidelines, and procedures issued under the Electricity Act.
Can you explain the concept of “Open Access” in the context of the power sector?
Open Access allows consumers to choose their electricity supplier, enabling competition and potentially lowering costs.
Why is it important for tariffs to be cost-reflective?
Cost-reflective tariffs ensure that the price of electricity reflects the actual cost of generation, transmission, and distribution. This promotes transparency, financial sustainability for power companies, and avoids hidden subsidies.
