MoP issues draft Electricity (Amendment) Rules, 2023

The MoP has issued the draft Electricity (Amendment) Rules, 2023. As per the draft, 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 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 draft rules also propose framework for financial sustainability, which states that the loss reduction trajectory to be adopted by the state commissions for tariff determination should be as per the trajectory agreed by the respective state governments and approved by the central government under any national scheme or programme. Comments have been sought on the draft rules by May 11, 2023.