Lok Sabha Question No. 3868 (UNSTARRED), answered on 2018-08-09
Subject: Penalty for Load Shedding
Ministry: POWER
Asked by: KAMAL NATH, JYOTIRADITYA MADHAVRAO SCINDIA

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.3868 TO BE ANSWERED ON 09.08.2018

## PENALTY FOR LOAD SHEDDING

3868. SHRI KAMAL NATH: SHRI JYOTIRADITYA M. SCINDIA:

Will the Minister of POWER be pleased to state:

(a) whether the Government  has recently announced  that power distribution companies or discoms have to pay penalty for load shedding in any area across the country;

- (b) if so, the details thereof;

(c) whether the Aggregate Transmission and Commercial (AT&C) losses claimed by any of the discoms would not be reimbursed;

- (d) if so, the reasons therefor; and

(e) the details of Union Government's new power policy and the time by which it is likely to be announced?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY

( SHRI  R. K. SINGH )

(a) to (e) :    The Central Government in the proposed draft amendments to the National tariff policy, 2016 has included  the provision for imposition of penalties on the Distribution companies for power cuts other than force majeure conditions or technical faults by Appropriate Commission. In the draft  amendments to the tariff  policy,  it  has  been  proposed  to  stipulate that  the  State  Electricity  Regulatory  Commissions  and  Joint  Electricity Regulatory Commissions shall not consider AT&C losses exceeding 15% for determination of tariff after 31.03.2019.

The details of proposed amendments to tariff policy are given at  Annexure.  The  proposed  amendments  are  under  finalisation  on  the basis of comments received from various stakeholders.

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## ANNEXURE

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  UNSTARRED QUESTION NO.  3868 TO BE ANSWERED IN THE LOK SABHA ON 09.08.2018.

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## Proposed Amendments in Tariff Policy

The proposed Amendments in Tariff Policy include amendments in provisions related to Generation, Transmission and Distribution of electricity.  The  focus  is  to  make  24x7  uninterrupted  power  supply  to  all consumers,  improve  efficiency  in  the  operation  of  distribution  business, addressing certain constraints faced in implementing change-in-law provisions,  issues  in  open  access,  compliance  and  related  aspects,  Tariff design related issues including simplification of tariff categories and rationalization of retail tariff. Highlights of certain key proposed amendments are as follows:

-  Consumer should not be asked to pay the price of inefficiencies of the Discom, therefore AT&C Losses in excess of 15% shall not be passed on to the consumers but shall be borne by Discom.
-  24 hours supply of adequate and uninterrupted power may be ensured to  all  categories  of  consumers  by  March,  2019  or  earlier.  In  case  of power cuts other than in force majeure conditions or technical faults an appropriate penalty, as determined by the SERC shall be levied on the Distribution  Company  and  credited  to  the  account  of  the  respective consumers.
-  Standards of performance for Distribution Licensee to include continuity  and  reliability  of  supply,  quality  of  supply  ,  timeframe  for disposing  application  for  connection/  disconnection/enhancement  or reduction of connected load and complaints of disruption in supply
-  Subsidy  to  any  category  of  consumers  would  be  required  to  be  given through Direct Benefit Transfer i.e. directly in the bank account of such consumers.
-  Appropriate Commission would ensure that cross-subsidies are reduced and the tariff  for  all  consumer  categories  are  brought  within  ±20%  of the average cost of supply effective from 1st April 2019 or earlier.
-  Simplification of tariff categories and rationalization of retail tariff.
-  Suitable provisions for promotion of Electric Mobility- No licence would be required for setting up any charging stations for Electric Vehicles.

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