2 weeks ago
Draft SHANTI Rules Shed Light on Nuclear Power Tariff Decisions
India makes electricity using nuclear power.
The government is planning a new law called the SHANTI Act.
It released draft rules explaining who will decide the price of nuclear electricity.
According to the draft, the Central Government will set the price based on advice from a committee.
A council called the Atomic Energy Redressal Advisory Council will review problems, and the head of the Central Electricity Authority must be present when prices are discussed.
Companies that make nuclear power want to set their own prices, or have prices decided through open competition.
Right now, prices for existing nuclear plants are set by the Department of Atomic Energy along with the Central Electricity Authority.
Prices for other power plants are set by a different body called the Central Electricity Regulatory Commission.
Anyone can send feedback about these rules until September 4.
The Department of Atomic Energy released draft rules under the SHANTI Act for public consultation until September 4.
Per the draft, tariffs for nuclear electricity supply and related services will be set under section 37 of the Act, based on recommendations of a Committee constituted by the Central Government.
The rules create an Atomic Energy Redressal Advisory Council with a quorum of three, requiring the Chairperson of the Central Electricity Authority to be present for tariff matters.
The industry wants a separate authority and competitive bidding for nuclear tariffs, while the Act assigns tariff-fixing to the Central Government.
In submissions to NPCIL's Bharat Small Reactors request for proposal, most players seek freedom to sell, use, or supply electricity under the Electricity Act 2003 without DAE approval.
- Who
- The Department of Atomic Energy released the draft rules; nuclear power industry players and NPCIL are involved in the consultations.
- What
- Draft rules under the SHANTI Act specify how tariffs for nuclear power supply and related services will be fixed, with the Central Government determining tariffs in accordance with section 37 of the Act.
- Where
- India.
- When
- The draft rules were released on Friday, with public consultation open until September 4.
- Why
- To establish norms and mechanisms for nuclear power tariff fixation as India expands private sector participation and works toward a 100 GW nuclear capacity roadmap.
Government and Regulators
Industry and Nuclear Power Developers
Who should set nuclear power tariffs
Government and Regulators
The SHANTI Act says the Central Government shall fix the tariff for electricity supplied from nuclear power plants, based on recommendations of a Central Government-constituted Committee.
Industry and Nuclear Power Developers
Industry wants a separate authority to regulate nuclear power tariffs and tariff discovery through competitive bidding; a panel for India's 100 GW roadmap recommended separating tariff regulation from the government.
Freedom for private players to sell nuclear power
Government and Regulators
The current framework keeps approvals with the Department of Atomic Energy, and the Ministry of Power has been seeking control over tariff decisions for nuclear power by private players.
Industry and Nuclear Power Developers
In submissions to NPCIL's Bharat Small Reactors request for proposal, most players say developers should have freedom to sell, use, or supply electricity as per the Electricity Act 2003 without DAE approval.
Key facts
- Act
- Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act
- Draft rules released by
- Department of Atomic Energy
- Public consultation deadline
- September 4
- Tariff-setting authority (per draft)
- Central Government, under section 37 of the Act
- Review body created
- Atomic Energy Redressal Advisory Council
- Council quorum
- Three members; Chairperson of Central Electricity Authority mandatory for tariff matters
- Current tariff setters for existing plants
- Department of Atomic Energy along with Central Electricity Authority
- Tariff regulator for other generators
- Central Electricity Regulatory Commission (CERC)
Quotes
Draft Rules
Statement from the newly released draft rules
“"The norms and mechanisms for fixation of the tariff for supply of electricity or for charges to be levied for process heat, isotope production, or any other service shall be determined in accordance with section 37 of the Act based on the recommendations of a Committee constituted by Central Government,"”
businesstoday.in
Sources
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