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Government notifies new power transmission rules for power generation companies

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Government notifies new power transmission rules for power generation companies

In order to facilitate better access to the national electricity transmission network to power generating companies, the government has notified the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules, 2021.

As per the new rules, while seeking transmission access, power plants will not be required to specify their beneficiaries, rather, state power distribution and transmission companies will be able to buy power from short- and medium-term contracts and optimize their power purchase expenses. Can do

A statement issued by the Ministry of Power said that the new rules, apart from providing access to the power transmission network to the generating companies, will also promote an overall transformation of the transmission system.

As of now, power generation companies apply for Long Term Access (LTA) with transmission companies based on their supply agreements. Additional or incremental transmission capacity is provided to them depending on the LTA application.

Official sources said that with the government’s increasing emphasis on renewable energy, a need was felt to replace the existing transmission system and hence new rules were introduced.

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