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Legal Central Ministry of Power Electricity Act, 2003

Central Government has issued a Directive for Gas Based Generating Stations (GBSs) under Section 11 of the Electricity Act, 2003

12-Apr-2024 | No. 23/05/2024-R&R

The Central Government has issued an Office Memorandum on Directive for Gas Based Generating Stations (GBSs) under Section 11 of the Electricity Act, 2003, effective from 1st May, 2024. By virtue of the Office Memorandum, the following directives have been issued: 1. GRID-INDIA will inform GBSs in advance about expected high-demand and stress days. GBSs shall prioritize offering their power to Power Purchase Agreement (PPA) holders, with surplus capacity made available to GRID-INDIA for grid support. 2. GBSs with PPAs shall offer capacity based on the Energy Charge Rate (ECR) determined by the Appropriate Commission. Those without PPAs must offer capacity based on a benchmark ECR determined by a Committee, ensuring coverage of all prudent costs. 3. Payment Security Mechanism under Late Payment Surcharge Rules, 2022 shall apply. GBSs shall adhere to these directives regardless of any outstanding dues, which will be addressed separately. 4. GBSs shall submit a weekly report to GRID-INDIA detailing power generation and sales. GRID-INDIA shall notify detailed procedures for directive implementation within seven (7) days. Refer to the attached document for more information.

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