Govt approves new power tariff policy

With an aim to tighten the regulations for setting power rates and promoting clean energy, better regulation of discoms, and faster roll-out of investments, the government has approved new power tariff policy. The move which will support the Swachh Bharat programme, will reflect concern for the environment and encourage renewable energy. A major objective of the policy are promotion of renewable generation sources and aim to create more competition, efficiency in operations and improvement in quality of power supply.

The new tariff policy has more than 30 amendments in the existing tariff policy which was formed as a continuation of the National Electricity Policy 2005. Under the new tariff policy, the power plants will have to use processed municipal waste water available in their vicinity. The policy will look to strengthen the regulatory mechanism so that discoms become more efficient and conscious towards their duties to consumers. The proposed policy will bring in several unique aspects which have not been touched in the past. It will allow distribution companies to buy any amount of power produced from the waste.

Besides, the policy also underlines norms for ancillary services. The central commission has been given the right to introduce the norms and framework for ancillary service which is necessary to support the power system or grid operation for maintaining power quality, reliability and security of the grid, including the method of sharing the charges.