Question : Tariffs for Multi-State Power Projects

(a) whether the tariffs for multi-State power projects will be determined by the Central Electricity Regulatory Commission thereby removing a major point of uncertainty to do with such projects;

(b) if so, the details thereof and the status thereto;

(c) whether the power regulator has to come up with a clear action plan to ensure 24X7 power supply to all consumers by 2021-22 or earlier as per the amended policy which also enables the creation of micro grids in remote villages not connected to the grid, and selling of the surplus power by these micro-grids to the grid when it reaches those areas; and

(d) if so, the details and the current status thereof?

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI R.K. SINGH)

(a) & (b) : Section 79 of the Electricity Act, 2003 mandates the Central Electricity Regulatory Commission (CERC) to regulate the tariff of generating companies owned or controlled by the Central Government including the generators having a composite scheme for generation and sale of electricity in more than one State. Accordingly, tariff for multi-state power projects is determined by the CERC as per the provisions of Electricity Act. All Tariff petitions filed from time to time by multi-state power projects are disposed by CERC after following due regulatory process.


(c) & (d) : Electricity is a concurrent subject and responsibility of supplying 24x7 power to all consumers lies in the purview of State/ State Power Utilities. The Tariff Policy 2016 stipulates that the State Electricity Regulatory Commissions will devise a specific trajectory so that 24-hour supply of adequate and uninterrupted power can be ensured to all categories of consumers by 2021-22 or earlier depending upon the prevailing situation in the state.

The Tariff Policy also states that the micro-grids supplying renewable energy may be set up in such areas where the grid has not reached or where adequate power is not available in the grid. There may be a risk that consumers may shift from micro grid to grid when the grid reaches the micro-grid area. In order to mitigate such risk Appropriate Commission to put in place a regulatory framework to mandate compulsory purchase of power into the grid from micro grids at a tariff to be determined under section 62 of the Electricity Act, 2003.

With the joint effort of Central Government and State Governments the electricity grid has reached to all the villages.


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