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ARTICLE · 02 DECEMBER 2021

Projects, Energy & Infrastructure Monthly Newsletter | November, 2021

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The Ministry of Power (MoP) vide its notification/letter dated Nov 11, 2021 issued a direction to all State and Union Territory Governments...

IndiaEnergy and Natural Resources
Shreshth Sharma
Shreshth Sharma
Saurobroto Dutta
Saurobroto Dutta
Molshree Bhatnagar
Molshree Bhatnagar
Shefali Tripathi
Shefali Tripathi
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Directions by Ministry of Power for automatic pass through of fuel and power procurement cost in tariff

  • The Ministry of Power (MoP) vide its notification/letter dated Nov 11, 2021 issued a direction to all State and Union Territory Governments, State Electricity Regulatory Commissions (SERCs)/Joint Electricity Regulatory Commissions (JERCs) regarding automatic pass through of the fuel and power procurement cost in tariff for ensuring the viability of the power sector. This letter/notification has been issued in order to ensure a mechanism for timely automatic pass through of fuel cost.
  • Key aspects:
    • In order to ensure that the power sector does not face any constraints in maintaining assured power supply, all stakeholders must ensure that there is timely recovery of cost. This includes two steps:

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