Cabinet approves amendments in Power Tariff Policy to ensure 24X7 affordable Power

Cabinet approves amendments in Power Tariff Policy to ensure 24X7 affordable Power for all

Ques: Recently Union Cabinet approved amendments in Power Tariff Policy to ensure 24X7 affordable power and promoting clean energy. In this context, consider the following statements.

(1) In this, provision has been made to provide electricity at affordable rates.
(2) In order to promote renewable energy, 8% of electricity consumption excluding hydro power, shall be from solar energy by March 2022.
(3) In this there is provision to install Smart meters to enable “Time of Day” metering, reduce theft.
(4) The amendments are also aimed at achieving the objectives of Ujwal DISCOM Assurance Yojana (UDAY).
Choose the correct code:
(a) Only(1) and (2) are true
(b) Only (2) and (4) are true
(c) Only (1),(2) and (3) are true
(d) All four are true.

Ans (d)

Related facts:

  • On 20 January 2016, The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the proposal of the Ministry of Power for amendments in the Tariff Policy.
  • These amendments have been made in the Tariff policy 2006.
  • The amendments are also aimed at achieving the objectives of Ujwal DISCOM Assurance Yojana (UDAY).
  • It also focuses on 4 Es: Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensure financial viability.

Highlights of Amendments are: 

  • 24X7 supply will be ensured to all consumers and State Governments and regulators will devise a power supply trajectory to achieve this.
  • Power to be provided to remote unconnected villages through micro grids with provision for purchase of power into the grid as and when the grid reaches there.
  • Reduction in the power cost to consumers through expansion of existing power plants.
  • Transmission projects to be developed through competitive bidding process to ensure faster completion at lower cost.
  • Faster installation of Smart meters to enable “Time of Day” metering, reduce theft and allow net-metering.
  • Renewable Power Obligation (RPO): In order to promote renewable energy and energy security, 8% of electricity consumption excluding hydro power, shall be from solar energy by March 2022.
  • No inter-State transmission charges and losses to be levied for solar and wind power.
  • Swachh Bharat Mission to get a big boost with procurement of 100% power produced from Waste-to-Energy plants.
  • To release clean drinking water for cities and reduce pollution of rivers like Ganga, thermal plants within 50 km of sewage treatment facilities to use treated sewage water.
  • States allowed to setup plants, with up to 35% of power procured by DSICOMs on regulated tariff.
  • Clarity on tariff setting authority for multi-State sales. Central Regulator to determine tariff for composite schemes where more than 10% power sold outside State.
  • These amendments will benefit power consumers in multiple ways. While reducing the cost of power through efficiency, they will spur renewable power for a cleaner environment and protect India’s energy security.
  • They would also aid the objectives of Swachh Bharat Mission as well as ‘Namami Gange’ Mission through conversion of waste to energy, usage of sewage water for generation and in turn ensure that clean water is available for drinking and irrigation.
  • Reference:

    http://pib.nic.in/newsite/PrintRelease.aspx?relid=134630