The Union Cabinet approved the “National Tariff Policy for Electricity” aimed at tightening regulations for setting power rates and promotion of clean energy in a support to Swachh Bharat programme.
(Minister of State for Power – Piyush Goyal)
- The Central government had approved the National Tariff Policy under the provisions of the Electricity Act in 2006, as in 2006, the central government had approved the National Tariff Policy under the provisions of Electricity Act, 2003.
Key provision of National Tariff Policy:
- Amended policy is focused on 24X7 electricity supplies to be ensured to all consumers.
- Under the policy, the power plants will have to use processed municipal waste water available in their vicinity (in 100 km radius).
- Power would be supplied to remote unconnected villages through micro-grids with the provision for purchase of power into it.
- Affordable power is to be provided to people near coal mines by enabling procurement of power from coal washery reject-based plants.
- The new policy will encourage faster roll-out of investment.
- It also reflects concern for environment and encourages renewable energy.
- It will also look to strengthen regulatory mechanism so that discoms become more efficient and conscious towards their duties to consumers.
The proposed policy will bring in several unique aspects which have not been touched in the past. It will allow distribution companies to buy any amount of power produced from the waste.