Electricity can be cheaper by the far-reaching decision of Modi Government
Saturday - November 23, 2019 4:05 pm ,
Category : WTN SPECIAL
Amendment in electricity purchasing rules
…So now your electricity bill may come down
NOV 23 (WTN) - Due to the policies of the Modi Government, you can get cheap electricity soon and your electricity bill can be reduced soon. You must be wondering that after all that has been done by the Modi government due to which electricity is going to be cheap. So, for your information, let us know that the new power purchase rules have come into effect from August 1, due to which the cost of power generating companies has come down. After this, it is believed that the price of electricity may decrease.
If this happens, then every month you will have to spend less on electricity bills than before. According to the information received from the media, the Ministry of Power has written a letter to all the regulators asking that the electricity rates should be reduced and full benefits should be given to the consumers. It is being said that if the power companies give this benefit to the consumers, then every consumer can save Rs 10 on every 100 units. At the same time, there may be a reduction of 3 to 5 paisa per unit of electricity across the country.
For your information, let us know that due to the new policy of the Modi Government, the power companies have benefited about 4,500 crore rupees. According to the new rules, now Discom (Distribution Company) means that the companies distributing electricity have to pay advance payment to buy electricity. Electricity generating companies now provide electricity only after making advance payment or letter of credit. As per PPA rules, Discom gets 45 days of payment. At the same time, there is a provision for rebating on timely payment. Since Discom has been making advance payments since August 1, the government has been directed to rebate the power tariff.
In fact, due to the advance payment, the need for working capital of the power generating companies has reduced. It is being said that about 4,000 to 4,500 crore rupees are expected to be saved in the working capital of power generating companies.
At the same time, the cost of power generating electricity has come down since this new rule of the Modi Government. That is why the Ministry of Power has written a letter to all the regulators, and in this letter, the regulators have been asked to reduce the electricity rates received by Discoms, as well as directing consumers to reap the benefits of the reduction in electricity rates. In the letter, the ministry has clearly written that the regulatory agencies should reduce the fixed cost component (fixed rate of electricity per unit) by the companies distributing GenCos, because now GenCos do not need much working capital.
NOV 23 (WTN) - Due to the policies of the Modi Government, you can get cheap electricity soon and your electricity bill can be reduced soon. You must be wondering that after all that has been done by the Modi government due to which electricity is going to be cheap. So, for your information, let us know that the new power purchase rules have come into effect from August 1, due to which the cost of power generating companies has come down. After this, it is believed that the price of electricity may decrease.
If this happens, then every month you will have to spend less on electricity bills than before. According to the information received from the media, the Ministry of Power has written a letter to all the regulators asking that the electricity rates should be reduced and full benefits should be given to the consumers. It is being said that if the power companies give this benefit to the consumers, then every consumer can save Rs 10 on every 100 units. At the same time, there may be a reduction of 3 to 5 paisa per unit of electricity across the country.
For your information, let us know that due to the new policy of the Modi Government, the power companies have benefited about 4,500 crore rupees. According to the new rules, now Discom (Distribution Company) means that the companies distributing electricity have to pay advance payment to buy electricity. Electricity generating companies now provide electricity only after making advance payment or letter of credit. As per PPA rules, Discom gets 45 days of payment. At the same time, there is a provision for rebating on timely payment. Since Discom has been making advance payments since August 1, the government has been directed to rebate the power tariff.
In fact, due to the advance payment, the need for working capital of the power generating companies has reduced. It is being said that about 4,000 to 4,500 crore rupees are expected to be saved in the working capital of power generating companies.
At the same time, the cost of power generating electricity has come down since this new rule of the Modi Government. That is why the Ministry of Power has written a letter to all the regulators, and in this letter, the regulators have been asked to reduce the electricity rates received by Discoms, as well as directing consumers to reap the benefits of the reduction in electricity rates. In the letter, the ministry has clearly written that the regulatory agencies should reduce the fixed cost component (fixed rate of electricity per unit) by the companies distributing GenCos, because now GenCos do not need much working capital.
