The gazette notification on the Electricity (Amendment) Rules, 2022, came out recently and the Kerala government had objected to Rule 14 under the rules.

 

What does the Rule 14 say?

  • It permits distribution companies (Discoms) to automatically recover from consumers, on a monthly basis, the expenses arising out of variations in fuel price and power purchase costs.
  • It requires the State electricity regulatory commission to specify a price adjustment formula for automatically passing on the costs through the consumer tariff on a monthly basis.
  • Fuel and power purchase adjustment surcharges shall be calculated and billed to consumers, automatically, without going through the regulatory approval process, on a monthly basis, according to the formula, prescribed by the respective State Commission.