Government to pay Damages to Consumers for Load Shedding

State energy transition study

R K Singh has confirmed that the aim of the Government is to have “One Nation One Grid” and that it will pay damages to consumers in case of load shedding.

Union Minister for Power and New and Renewable Energy, R K Singh has said that the aim of the government is to have “One Nation One Grid” and that it will pay damages to consumers in case of load shedding.

The government will soon go ahead with structural reforms to achieve the objective of “One Nation One Grid”, Finance Minister Nirmala Sitharaman had said in her budget speech earlier this month. 

“The government will pay damages (to consumers) if load sheddings happen,” the Union Power Minister said without elaborating. 

The ministry would seek the Union Cabinet’s nod for the power tariff policy in next few days, which would provide for penalty for unscheduled power cuts except in the case of technical faults or act of God (natural calamities), Singh had said on the day of tabling the Union budget. 

Finance Minister Nirmala Sitharaman had announced in the budget that a package for the power sector would soon be brought by the government. 

The government intends to provide ’24X7 Power to All’ at affordable rates. Therefore, there would be a provision in the tariff to cap transmission and distribution losses. Once the tariff policy is approved, the distribution companies would not be allowed to pass on these losses beyond 15 percent. 

After inaugurating the Power Grid Vishram Sadan at the Rajendra Institute of Medical Sciences (RIMS) in Ranchi on July 14, 2019, Singh said, “Before 2014, many people whose houses did not have electricity used to think whether they would ever get it. Now, these deprived people have electricity in their homes.”

Recently, we reported that the cumulative grid-connected installed solar power capacity in India is approaching the 30 GW mark sooner rather than later with the installed capacity at the end of May 2019, being 29,409 MW, Minister of State for Power and New and Renewable Energy, RK Singh confirmed in a written response to the Parliament.

Singh added that India is moving very fast in adding renewable energy capacities. He also said that in the next 15-20 days, a scheme will be launched for farmers where they can set up 2 MW solar panel to produce power which will be bought by the government. Through this, he said, farmers can earn up to Rs one lakh per year.

In June, the minister had informed the parliament that India will add 131.31 GW of power generation capacity from 2019 to 2022. “Based on the present preparedness of projects, the likely power generation capacity addition from 2019 to 2022 is likely to be 1,31,316 MW,” Singh wrote in his response to the Rajya Sabha.