The revised tariff policy has been cleared by a group of ministers and it is likely to be implemented within a month, Power Minister R K Singh said on Friday.
The policy provides for steps like penalty for unscheduled power cuts by distribution companies.
“The tariff policy which had been sent to Union Cabinet, was referred to an informal group of ministers (GoM). That GoM has cleared it. So we propose to take it to the next Cabinet (meeting)….and hopefully it should be there within a month,” Singh said.
He was speaking at a digital interaction with CEOs from the power and renewable energy sectors, under the CII”s Energizing India Series.
The revised tariff policy provides for penalty for unscheduled power cuts, except in the case of technical faults or act of God (natural calamities).
The government intends to provide ”24X7 Power to All” at affordable rates. Therefore, there is a provision in the tariff to cap transmission and distribution losses. Once the tariff policy is approved, the discoms would not be allowed to pass on these losses beyond 15 per cent.
The policy would also encourage time of the day tariff where consumer would be charged more during peak hours. This would also enable the consumers to reduce their electricity bill by consuming more electricity during non-peak hours.