power sector: Centre amends rules to put off diesel generator use in cities in 5 years

The government amended rules mandating power distribution companies to supply 24×7 electricity in metros and large cities to dissuade diesel generation in five years. The state regulators have been asked to give a trajectory in this regard.

The Union power ministry issued a gazette notification to amend the Electricity (Rights of Consumers) Rules, 2020 concerned by the increasing pollution levels.

“In view of the increasing pollution level particularly in the metros and the cities with a population 1,00,000 and above, the distribution licensee shall ensure 24×7 uninterrupted power supply to all the consumers, so that there is no requirement of running the diesel generator sets,” the notification issued on Saturday said.

The rules said that the consumers, who are using the diesel generator sets as essential backup power, shall endeavor to shift to cleaner technology such as renewable energy with battery storage and the like in five years from the date of commencement of these rules or as per the timelines given by the State regulatory Commission.

The rules asked distribution companies to expedite the process of temporary power connections to consumers for construction activities or any temporary usage within no later than 48 hours. In case augmentation of the distribution system is required it can be seven days. “This shall avoid any use of diesel generator sets for temporary activities in the area of the distribution licensee,” the rules said.

“While the direction is negative for sales of diesel Genset, continued power shortages can result in spurt in sales in medium term,” said DAM Capital senior vice president Mohit Kumar.

The gazette has come at a time when many states in the country, including industrial hubs like Maharashtra, Andhra Pradesh and Telengana are facing power outages due to high electricity demand.