Home India Ministry of Power Amendments to Guidelines under Section 63 of the Electricity...
Date: 12-May-2023 Category: Extra Ordinary State: Union Government Country: India

Amendments to Guidelines under Section 63 of the Electricity Act, 2003 for procurement of power on FOO basis under para B(v) of the SHAKTI Policy

Issued by Ministry of Power · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This notification amends the guidelines under Section 63 of the Electricity Act, 2003, concerning the procurement of power on a Fuel on Offer (FOO) basis under para B(v) of the SHAKTI Policy. The amendment modifies the range for the Base Fixed Charge specified in bids.

Key Changes

  • The notification revises Para 7.4 of the guidelines issued on October 20, 2022, and amended on December 19, 2022.
  • The original guideline stated that both the Base Fixed Charge and the Base Variable Charge specified in the bid should each be at least 35% of the quoted tariff.
  • The amended guideline specifies that the Base Fixed Charge specified in the bid shall be in the range of 35% to 50% of the quoted tariff. The variable charge is not mentioned in the revision.

Impact Analysis

Power Generating Companies

  • Strategic Bidding: Companies need to strategically evaluate the optimal fixed and variable charge split to remain competitive while ensuring profitability.

Electricity Distribution Companies (DISCOMs)

  • Contract Negotiation: DISCOMs should carefully negotiate power purchase agreements to ensure the fixed charge component is appropriate for their specific needs and risk profile.

Consumers

  • Reliability of Supply: The changes could influence the reliability of power supply if they affect the financial viability of power generating companies.

Action Items

  • Regulatory bodies should monitor the implementation of the amended guidelines to ensure fair competition and consumer protection.

Key Entities Referenced

Ministry of Power: The government ministry responsible for issuing the notification and amending the guidelines. Electricity Act, 2003: The principal legislation governing the electricity sector in India, under which the guidelines are issued and amended. SHAKTI Policy: A policy related to coal linkage and power procurement, with para B(v) specifically addressing power procurement on a Fuel on Offer (FOO) basis. Resolution No. 23/03/2022-R&R: The original resolution published on October 20, 2022, which initially established the guidelines for power procurement on FOO basis. Resolution No. 23/05/2020-R&R: The resolution dated December 19, 2022, that previously amended the guidelines.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-13052023-245857 xxxGIDHxxx CG-DL-E-13052023-245857 xxxGIDExxx असाधारण EXTRAORDINARY भाग I—खण्ड 1 PART I—Section 1 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 120] नई दिल्ली, िुक्रिार, मई 12, 2023/ििै ाख 22, 1945 No. 120] NEW DELHI, FRIDAY, MAY 12, 2023/VAISAKHA 22, 1945 जिद्यतु मत्रं ालय सकं ल्प नई दिल्ली, 12 मई, 2023 िजि नीजत के परै ा बी(v) के अतं गतग एफ़ओओ आधार पर जिद्यतु की खरीि के जलए जिद्यतु अजधजनयम, 2003 की धारा 63 के अतं गतग दििाजनिेिों म ेंसिं ोधन स.ं 23/03/2022-आरएडं आर.—1.0 दिनांक 20 अिूबर, 2022 को भारत के रािपत्र (असाधारण) (भाग 1 - खडं 1) म ें प्रकाजित संकल्प सख्ं या 23/03/2022-आरएडं आर द्वारा जिद्युत अजधजनयम, 2003 की धारा 63 के उपबंधों के अंतगगत िजि नीजत के पैरा बी(v) के अंतगगत एफओओ आधार पर जिद्युत की खरीि के जलए जिद्युत अजधजनयम, 2003 की धारा 63 के अंतगगत दििा-जनिेि अजधसूजित दकए गए ह।ैं इसके बाि, दिनांक 19 दिसंबर, 2022 के संकल्प संख्या 23/05/2020-आरएडं आर द्वारा उि दििाजनिेिों म ेंऔर संिोधन दकए गए थे। 2.0 दिनांक 19 दिसंबर, 2022 को संिोजधत दिनांक 20 अिूबर, 2022 के उि दििा-जनिेिों म ें एति्द्वारा जनम्नजलजखत संिोधन दकए िात े ह,ैं अथागत्:- परै ा 7.4 “7.4 बोली में जनर्िगष्ट प्रत्येक मूल जनजित प्रभार तथा मलू पररितगनिील प्रभार उद्धृत टैररफ का कम स े कम 35% होगा।” जनम्नानसु ार प्रजतस्ट्थाजपत दकया िाए: “7.4 बोली में जनर्िगष्ट मूल जनजित प्रभार उद्धृत टैररफ के 35% स े50% की रेंि में होगा।” पीयूष ससंह, संयुि सजिि 3114 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] MINISTRY OF POWER RESOLUTION New Delhi, the 12th May, 2023 Amendments to Guidelines under Section 63 of the Electricity Act, 2003 for procurement of power on FOO basis under para B(v) of the SHAKTI Policy No. 23/03/2022-R&R.—1.0 The Guidelines under Section 63 of the Electricity Act, 2003 for procurement of power on FOO basis under para B(v) of the SHAKTI Policy have been notified under the provisions of Section 63 of the Electricity Act, 2003 vide resolution No. 23/03/2022-R&R published in the Gazette of India (Extraordinary) (Part I - Section 1) on 20th October, 2022. Subsequently, the said guidelines were further amended vide resolution No. 23/05/2020-R&R dated 19th December, 2022. 2.0 The following amendments are hereby made in the said guidelines of 20th October, 2022 amended on 19th December, 2022, namely:- The Para 7. 4 “7.4 The Base Fixed Charge and the Base Variable Charge specified in the bid shall each be at least 35% of the quoted Tariff” May be substituted as under: “7.4 The Base Fixed Charge specified in the bid shall be in the range of 35% to 50% of the quoted Tariff” PIYUSH SINGH, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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