Govt issues guidelines before Electricity Act

Sources said the power ministry was required to come out with these guidelines by June 9, 2005. The Electricity Act made it mandatory for the government to come up with such clarifications within two years from the date the Act came into force. A few days ago, the ministry had notified the investment norms for second distribution licensees.

The new rules mandate that captive users need to hold a minimum 26 per cent equity in the captive plant and need to consume a minimum 51 per cent of the electricity produced from the plant.

On power tariffs, the rules specify that the tariff determined by the central commission shall not be subject to re-determination by the state commission. Under the Electricity Act, the central commission is to regulate the tariffs of power companies owned by the Centre and tariffs of generating companies that sell electricity to more than one state.

On maintenance of grid discipline, the rules state that if a transmission licensee (private or state owned) persistently fails to maintain availability or follow directions the regulatory commissions can direct the national, regional or even the state load despatch centres to take over the operations of these transmission licensees.

On consumer redressals, the rules say the ombudsman is to file a detailed report every six months on the action taken on complaints. This report is then to be forwarded to the state commission and state government concerned.