PANAJI
In notable reforms to aid greater involvement of private firms in the power sector, the Centre invoked powers under the Electricity Act, 2003, to introduce a couple of fresh provisions in the Electricity Rules, 2005, to do away with the need of a licence for setting up and operating dedicated transmission lines.
The notification of the Electricity (Amendment) Rules, 2024 were published in the Central Gazette on Wednesday (January 10, 2024) and effective immediately.
The amendment introduces two new rules, one of which provides for establishment, operation and maintenance of dedicated transmission lines.
Accordingly, power generating companies, those setting up captive generating plants, energy storage systems or consumers with a load of at least 25 MW for inter-State transmission system and 10 MW for intra-State transmission systems will be exempt from obtaining licenses under the Act. There is however a condition imposed on these entities for ensuring minimum standards for the transmission infrastructure.
The second rule relates to 'Open Access Charges' which covers wheeling charges, charges for use of government transmission utility networks and additional surcharges for open access consumers.
These new rules also define the formula for calculating wheeling charges.
The changes in the rules are aimed at streamlining processes and encourage the participation of private entities in the power sector, especially transmission of power besides ensuring a fair and transparent tariff structure.
The Tamnar project in Goa, basically a power transmission facility, could be a major beneficiary of these latest amendments through the Central Electricity (Amendment) Rules, 2024.
A top official of the promoters of the Tamnar project, said they are aware of the changes in rules and their policy team is still analysing how these changes will affect their ongoing projects here and elsewhere.
