To discuss amendments to Electricity Act

The Power Ministry is holding a meeting on Wednesday with the State Electricity Regulatory Commissions to look into the proposed amendment to the Electricity Act.

Talking to reporters on the sidelines of an NTPC event here on Tuesday, Veerappa Moily, Power Minister, said, “The Act needs to be amended in view of the present and emerging situations and needs in the electricity sector.”

He added that a task force has already been appointed to examine the amendments in the Act.

“Apart from that there is a need to incorporate concrete parameters for fixing the tariff and that will be discussed,” Moily said.

Some of the proposed amendments relate to Section 11 of the legislation which is invoked by States to limit open access, single-buyer model, appraisal of regulators, etc. The Ministry has also proposed amendments to Section 42 to allow multiple suppliers of power in any licensed area.

When asked about the reported comments of Attorney General Goolam Vahanvati which stated that the power regulator can revise electricity tariffs irrespective of the contracts signed by power producers with distribution companies, Moily said, “I do not know if there is any report from the Attorney General.”

Though he added that, “There is sanctity for signing a PPA (power purchase agreement). It cannot be meddled with. One can examine it on a case-to-case basis if there is a need”.

The Minister will also be meeting the power producers on Friday.

(This article was published on August 28, 2012)
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