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Legal Central Ministry of Power Electricity Act, 2003

Ministry of Power issues a Clarification regarding Guidelines for operationalizing the optimum utilization of generating stations as per the requirement in the Electricity Grid

22-Apr-2024 | No.FU-22/2023-FSC

The Ministry of Power has issued a Clarification regarding Guidelines for operationalizing the optimum utilization of generating stations as per the requirement in the Electricity Grid, effective from 22nd April, 2024. By virtue of the Notification, the following points have been highlighted: 1. Power generators are required to offer un-requisitioned surplus power in the power market, as mandated by the Tariff Policy, 2016. 2. Generators regulated under section 62 and those with Power Purchase Agreements (PPAs) under section 63 of the Electricity Act, 2003, are permitted to sell power in the power market to ensure optimal utilization of generation capacity. 3. Guidelines for operationalizing optimum utilization of generating stations were issued by the Ministry of Power on 8th October, 2021, in accordance with the Tariff Policy, 2016. 4. Section 9(5) of the Electricity (Late Payment Surcharge and Related Matters) Rules of 2022, amended in 2024, allows for the sale of surplus power within the declared generation capacity but not requisitioned by distribution companies. 5. Power utilities have raised concerns regarding the limitations imposed by existing Fuel Supply Agreements (FSAs) and SHAKTI B (ii) for Independent Power Producers (IPPs) on the usage of linkage coal. Refer to the attached document for more details.

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