The Ministry of Power on 22nd October 2022, has published the Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021 which shall be applicable to generating company and transmission licensee.
The ministry informed that timely recovery of the costs with the change in law assumes significance as the investment in the power sector depends on a great extent upon timely payments. The generating company or transmission licensee, being the affected party, which intends to adjust and recover the costs due to change in law, shall give a three weeks prior notice to the other party about the proposed impact in the tariff or charges, positive or negative, to be recovered from such other party.
The affected party shall furnish to the other party, the computation of impact in tariff or charges to be adjusted and recovered, within thirty days of the occurrence of the change in law or on the expiry of three weeks from the date of the notice, whichever is later, and the recovery of the proposed impact in tariff or charges shall start from the next billing cycle of the tariff.
The generating company or transmission licensee shall, within thirty days of the coming into effect of the recovery of impact of change in law, furnish all relevant documents along with the details of calculation to the Appropriate Commission for adjustment of the amount of the impact in the monthly tariff or charges.
Further, a formula has been provided to calculate adjustments in the monthly tariff due to the impact of Change in Law.
