India’s Ministry of Power has proposed to amend its electricity rules to facilitate electricity sales to 3rd parties by electricity producers.
The amendments will result in reduced fixed costs and cut retail tariffs for end-users.
The Ministry has asked for comments on the amendments to the draft Electricity Amendments Rules, 2021.
The amendments will give the generation companies the option to sell power to 3rd parties, thereby reducing the fixed cost burden on the distribution companies.
”In order to boost the confidence of the investor in generation projects, the generation project developer and also to reduce the burden of the distribution licensee, the order of payment, i.e. the principle of first in and first out for payment of bills has been proposed,” said in a statement issued by the Ministry.
The Ministry said that the proposed amendments are in the interest of the electricity consumers and the power sector.