One Nation-One Grid-One Frequency in India
GOVERNMENT OF INDIA
MINISTRY OF POWER
UNSTARRED QUESTION NO: 673
ANSWERED ON: 22.07.2021
One Pricing Policy
Magunta Sreenivasulu Reddy
Will the Minister of POWER be pleased to state:-
(a) the status of the ‘one nation, one grid, one frequency, one price’ Policy;
(b) the steps taken by the Union Government for receiving the views of State Governments over this policy;
(c) whether the Government has identified the States which are facing acute power crisis and if so, the details thereof;
(d) the details of mechanism to increase power generation to meet the demand of these States; and
(e) the steps taken by the Government to implement one pricing policy?
ANSWER: THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY (SHRI R. K. SINGH)
(a) & (b) : Development of National Grid has been undertaken on priority basis for optimal utilisation of unevenly distributed resources as well as to facilitate power transfer from surplus to deficit regions across the country. In the process, five regional grids namely Eastern Region (ER), North Eastern Region (NER), Western Region (WR), Northern Region (NR) and Southern Region (SR) have been integrated through high capacity High Voltage Direct Current (HVDC), 765 kV/400 kV inter-regional links. Integration of regional grids resulted in formation of One Nation – One Grid – One Frequency. Inter regional transfer capacity now stands at 1.05 lakh MW.
Electricity rates for consumers vary in different States as these are decided by the respective State Commissions depending upon the various factors like power purchase cost, Aggregate Technical and Commercial (AT&C) loss, Operation and Maintenance (O&M) expense, consumer mix etc., which varies from State to State.
(c) & (d) : Power Supply position in country during the current year 2021-22 (upto June 2021) is given at Annexure. There is no deficit of power generation capacity in the country. The installed generation capacity is around 384 GW whereas the peak demand so far has been about 200 GW.
Electricity is a concurrent subject. Supply and distribution of electricity to various categories of consumers in a State, is done by the concerned State Government/Power Utility. The Central Government supplements the efforts of the State Governments by establishing power plants in Central Sector through Central Public Sector Undertakings (CPSUs) and allocating power from them to the various States / UTs to meet their respective energy requirement and constructing Inter State Transmission lines to transfer power from one part of the country to another.
(e) : The Tariff Policy notified by the Central Government lays down general principles for tariff determination by the Central Commission and the State Commissions. Further, Section 61 of the Electricity Act, 2003 inter-alia lays down that the Appropriate Commission shall be guided by the principles and methodologies specified by the Central Commission for determination of tariff applicable to generating companies and transmission licensees.
The Government is promoting competition through power exchanges. Most of the time, there is one rate for the power traded in the power exchanges for all the buyers in the country. Various measures have been taken to enhance share of electricity sold through electricity exchanges.
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