Load Shedding To Become A Costly Affair: Union Government To Penalise Discoms For Unscheduled Power Cuts

The Union government is soon expected to approve a proposal to impose penalties on power distribution companies (discoms) for unscheduled power cuts, reports Press Trust of India (PTI).

“The proposal for tariff policy ready and will soon go for Cabinet approval. The policy provides for penalty for unscheduled power cuts except in the case of technical faults or act of God (natural calamities),” said Minister for Power R K Singh on Tuesday (22 January).

Singh added that state regulatory agencies would be given powers to determine penalties for voluntary load shedding by the discoms. As per the Electricity Act, 2003, a State Electricity Regulatory Commission (SERC) is empowered to fix tariffs and enforce a penalty for under-performance by a discom.

‘Cutting’ Across The Country

In January 2019, residents of Bengaluru complained of both longer and frequent power cuts. Many a time, the cuts lasted for hours. Protests had also erupted in certain parts of Kashmir due to numerous power cuts.

The Delhi Electricity Regulatory Commission (DERC) has led the way in improving the customer experience by announcing a compensation plan in case of unscheduled power-cuts, the provision still hasn’t been enforced.

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