The Electricity Rules, 2005 ("Rules")
underwent a comprehensive re-evaluation in 2023 whereby several
amendments to key provisions were made. The reforms in the sector
continue with the recent amendment to the Rules by way of the
Electricity (Amendment) Rules, 2024 ("Amendment
Rules"). Noteworthy among the amendments are the
efforts to:
1. enable consumers to set up dedicated transmission lines;
2. rationalize the open access charges; and
3. address the disjunction between revenue and tariff
structures.
Establishment, operation and maintenance of dedicated
transmission lines
- The Electricity Act, 2003 ("Act")
requires a license for establishing transmission lines1.
However, an exemption to this provision was created for generating
companies and persons setting up captive generating plants for
establishing, operating or maintaining dedicated transmission lines
by means of the Electricity (Removal of difficulty) Fifth Order,
20052. This exemption saw a rise
