India to penalise distribution companies for surprise power cuts

It will soon approve a policy that could come into effect by 1 April.

Mercom India reports that India will soon approve a power tariff policy that would penalise distribution companies (discoms) for unscheduled power cuts, power minister R.K. Singh said. The policy could come into effect by 1 April 2019.

PTI news agency quoted Singh, “The proposal for tariff policy is ready and will soon go for the cabinet’s approval. The policy provides for penalty for unscheduled power cuts except in the case of technical faults or act of God (natural calamities).”

The official added that state power regulators would ensure the penalty will be imposed on discoms for voluntary load shedding.

Previous attempts to penalise discoms included a plan in 2017 to inflict a penalty for load-shedding, as well as a proposal in 2018 to give residents compensation in case of surprise power cuts.