The power ministry seeks to implement automatic monthly revision in electricity tariffs by changing the Electricity Rules, 2005, to achieve a key objective of the Electricity (Amendment) Bill, 2022, that is stuck in Parliament's standing committee on energy.
One of the key objectives of the Bill is to ensure recovery of "all prudent costs" of electricity from consumers to improve the financial health of the distribution companies (discoms). In other words, the ministry wants tariffs to reflect the full cost, including the impact of variation in fuel prices, of power procured by discoms.
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