The directive is well-timed for dealing with the issue of electricity shortages. The Direction also includes measures to assure proper and fair pricing of this power, including weekly payments from purchasers to ensure commercial sustainability. The Electricity Act does not require a license to operate a generation plant (excluding hydro). However, a variety of approvals, consents, and permits from various central and state organizations must be sought and maintained during the plant's operation.
In this precious session the vital and pivotal, Directions are given to energy generating corporations, which are in charge of producing power, in Section 11 of the Electricity Act of 2003. 1)These aspects are covered by the provisions in this section:It states that every distribution licensee, upon receiving an application for the supply of electricity, shall supply electricity to the applicant within a reasonable time and in accordance with the provisions of the Act. 2) In 2018 the massive hydro and thermal power projects of China became operational in due course and China s supplied electricity . Pakistan's economy couldnt pay for the electricity of China. 3) But however However, indian government was concerned about the public interest security and the authority of the government post de-licensing which is why section 11 was included in the electricity act. 4)provided that companies in some circumstances have maintain a generating station in accordance with the directions by the government. four stages in which government can give directions- a) Threat to the security of the state; b) threat to public order and morality; c) Natural calamities, d) other circumstances affecting the public interest. In conclusion, Section 11 of the Electricity Act 2003 sets out the directions for generating companies to ensure optimal fuel, compliances, standards of performance, power purchase agreements, open access, renewable energy, etc
Sec-11 Directions to the generating companies 1) China and Pakistan decided to make China Pakistan economic corridor. The agreement is not only about roads but has maximum investment in the energy sector. Major chunk of investment is for the energy projects like thermal, hydro, wind, solar, etc. In 2015 they signed the China Pakistan energy Framework agreement which inter-alia spoke about timely payment and provisions of electricity. 2) in 2018 the massive hydro and thermal power projects of China became operational in due course and China started supplying electricity. Pakistan's economy was unable to pay for the electricity that they were receiving from China. This non-payment resulted in Pakistan facing severe blackouts. The Chinese companies could save the crashing economy of Pakistan but the government was unable to do it. 3) however India did not repeat this mistake. When electricity act 2000 was in the verge of formation, the energy project of 1991 was reminisced, which spoke about deal licensing and setting up an open market and making it free for the generating companies to set up electricity. However, government was concerned about the public interest security and the authority of the government post de-licensing which is why section 11 was included in the electricity act. 4)It provides that generating companies in extraordinary circumstances have to operate and maintain a generating station in accordance with the directions of the government. There are four situations in which government can issue such directions. These include: a) Threat to the security of the state; b) threat to public order and morality; c) Natural calamity- during lack of electricity generating companies can be asked to compulsorily produce electricity for the supply to, and generation from a few regions; d) other circumstances affecting the public interest. eg) sweltering heat, and economic growth. 5) however post issuing directions if the generating company has to incur additional costs the solution has been provided in the electricity act itself which says that independent regulatory commissions can offset the adverse financial impact through several means concerning supplementary power purchasing agreements or others. 6) The central government has exercised the section 11 option twice, once on 5th May 2022 when the government issued an order directing all the imported coal-based power plants to operate at full capacity up to October 2022 and, the second order was when the government realize that there would be additional 20% demand for electricity. So it has been directed that all imported coal-based power plants will be operational in full capacity providing national security.
Directions are given to generating corporations, which are in charge of producing power, in Section 11 of the power Act of 2003. These aspects are covered by the provisions in this section: In order to maximize overall efficiency and economics of power generation, the producing business must work to maintain an ideal fuel mix. The availability, quality, and economics of different fuels must all be considered while choosing the fuel mix. Grid discipline: The generating company must adhere to the grid discipline code established by the Central Electricity Regulatory Commission (CERC) or the State Electricity Regulatory Commission (SERC), depending on the circumstance .Performance standards: With regard to the operation and upkeep of generating stations, transmission lines, and distribution systems, the generating firm shall adhere to the performance criteria set forth by the CERC or the SERC. Grid connectivity: In accordance with the grid standards outlined by the CERC or the SERC, the producing business must guarantee grid connectivity of its generating station with the transmission system or distribution system, as applicable. Power purchase agreement: For the sale of the energy produced by its producing station, the generating firm must enter into a power purchase agreement with the distribution licensee or any other person, as the case may be.Open access: In accordance with the requirements of the Act and the rules enacted thereunder, the producing company shall grant open access to its transmission lines or distribution system, as the case may be. Renewable energy: In compliance with the renewable purchase obligation outlined by the CERC or the SERC, the producing business shall make an effort to produce power from renewable sources. Energy efficiency: The generating business must encourage power efficiency and energy conservation. In conclusion, Section 11 of the Electricity Act of 2003 lays out the guidelines for producing businesses to follow in order to maintain the best fuel mix, adherence to grid discipline and performance requirements, grid connection, power purchase agreements, open access, renewable energy, and energy conservation.the 2003 Electricity Act's Section 11
Section 11 of the Electricity Act 2003 empowers the appropriate government to issue directions to generating companies in matters related to the generation, supply, and use of electricity. These directions are aimed at ensuring the efficient and reliable operation of the power system.
Section 11 of the Electricity Act states that the under extraordinary circumstances, the government can ask power generating companies to operate and maintain output in accordance with directions given. For the purposes of this section, the expression “extraordinary circumstances” means circumstances related to threat to security of the state, public order or natural calamity or such other circumstances arising in the public interest. The section also states that an appropriate commission may consider offsetting the adverse financial impact of the directions on any generating company in such manner as it considers appropriate. In one recent Instance The Power Ministry has issued directions under Section 11 of the Electricity Act, 2003 (“Direction”), mandating all imported coal-based generating power- plants (“Gencos”) to operate and generate at their full capacity. The Direction also mandates that where the relevant Genco is undergoing corporate insolvency resolution process (“CIRP”), under IBC, the resolution professional shall take steps to make such plants functional. In the Case of G.M.R. Energy Limited vs Karnataka Electricity, it was held that the State Government can only give directions under Section 11(1) for operation and maintenance of the generating station in accordance to its directions. The State Commission alone has been empowered under Section 11(2) of the Electricity Act to offset the adverse financial impact on the generating company as a result of operating and maintaining the power plant as per the directions of the State Government under Section 11(1). The State Government is not empowered to determine the rate or terms and conditions at which the generating companies will supply power to the State Grid against directions u/s 11(1) of the Act. The rate specified by the State Government in the order regarding direction under Section 11(1) is only a rate at which the distribution licensees have to make payment to the generating company Appeal no. 37 of 2013 and Appeal no. 303 of 2013 in the interim period till the State Commission under Section 11(2) decides the compensation to be given to the generating company, if any, to offset the adverse financial impact of the directions of the State Government under Section 11(1).
Section 11 of the Electricity Act 2003 provides directions to generating companies, which are responsible for the production of electricity. This section contains provisions related to the following aspects: Fuel mix: The generating company shall strive to maintain an optimal fuel mix in the interest of the overall efficiency and economy in power generation. The fuel mix shall be determined keeping in view the availability, quality, and economics of various fuels. Grid discipline: The generating company shall comply with the grid discipline code specified by the Central Electricity Regulatory Commission (CERC) or the State Electricity Regulatory Commission (SERC), as the case may be. Standards of performance: The generating company shall comply with the standards of performance specified by the CERC or the SERC in relation to the operation and maintenance of generating stations, transmission systems, and distribution systems. Grid connectivity: The generating company shall ensure grid connectivity of its generating station with the transmission system or distribution system, as the case may be, in accordance with the grid standards specified by the CERC or the SERC. Power purchase agreement: The generating company shall enter into a power purchase agreement with the distribution licensee or any other person, as the case may be, for the sale of electricity generated by its generating station. Open access: The generating company shall provide open access to its transmission lines or distribution system, as the case may be, in accordance with the provisions of the Act and the regulations made thereunder. Renewable energy: The generating company shall endeavor to generate electricity from renewable sources of energy in accordance with the renewable purchase obligation specified by the CERC or the SERC. Energy conservation: The generating company shall promote energy conservation and efficient use of electricity. In summary, Section 11 of the Electricity Act 2003 sets out the directions for generating companies to ensure optimal fuel mix, compliance with grid discipline and standards of performance, grid connectivity, power purchase agreements, open access, renewable energy, and energy conservation.
Section 11 of the Electricity Act 2003 in India pertains to the "Duty of Licensees to Supply Electricity on Request." It states that every distribution licensee, upon receiving an application for the supply of electricity, shall supply electricity to the applicant within a reasonable time and in accordance with the provisions of the Act. This section emphasizes the obligation of distribution licensees to provide electricity to consumers upon request.
In addition to this explanation I would like to simplify the pointers which explains the CERC issued directions to Gen cos based on domestic coal under Section 11. The key directions are as follows: 1. All imported coal-based power plants shall operate and generate power to their full capacity. This is to ensure adequate supply of electricity and meet the growing demand. 2. Gencos with domestic coal-based plants supplying electricity under Section 63 of the Electricity Act, 2003, shall ensure maximum utilization of their installed capacity. This is to optimize the utilization of domestic coal resources and reduce reliance on imported coal. 3. Gencos shall maintain adequate coal stock to meet their generation requirements for at least 15 days. This is to ensure a reliable supply of electricity and prevent power outages due to coal shortages. 4. Gencos shall import coal only up to 10% of their requirement for blending and meet the growing demand for electricity. This is to balance the use of imported and domestic coal and promote the use of domestic coal. 4. The fixed charge for imported coal-based power plants shall be as per the Power Purchase Agreements (PPAs) or as has already been agreed mutually between the generating company and the procurers. This is to ensure fair compensation for gencos and protect the interests of consumers.
Section 11 of the Electricity Act, 2003, states that under extraordinary circumstances, the government can ask power generating companies to operate and maintain output in accordance with directions given.
Section 11 of the Electricity Act, 2003, states that under extraordinary circumstances, the government can ask power generating companies to operate and maintain output in accordance with directions given. In extraordinary circumstances, the state Government or the central government, will give direction and take can over the control of the generating company. The extraordinary circumstances are : 1. Threat to the security of the state. 2. Public Order 3. Natural calamity 4. Other circumstances arising in public interest.
Realy helpful to understand working policies of electricity department.
Thank you and glad to know that it’s useful.
Thanks
dandalu ayya , chala bagundhi
The directive is well-timed for dealing with the issue of electricity shortages. The Direction also includes measures to assure proper and fair pricing of this power, including weekly payments from purchasers to ensure commercial sustainability. The Electricity Act does not require a license to operate a generation plant (excluding hydro). However, a variety of approvals, consents, and permits from various central and state organizations must be sought and maintained during the plant's operation.
In this precious session the vital and pivotal, Directions are given to energy generating corporations, which are in charge of producing power, in Section 11 of the Electricity Act of 2003. 1)These aspects are covered by the provisions in this section:It states that every distribution licensee, upon receiving an application for the supply of electricity, shall supply electricity to the applicant within a reasonable time and in accordance with the provisions of the Act. 2) In 2018 the massive hydro and thermal power projects of China became operational in due course and China s supplied electricity . Pakistan's economy couldnt pay for the electricity of China. 3) But however However, indian government was concerned about the public interest security and the authority of the government post de-licensing which is why section 11 was included in the electricity act. 4)provided that companies in some circumstances have maintain a generating station in accordance with the directions by the government. four stages in which government can give directions-
a) Threat to the security of the state;
b) threat to public order and morality;
c) Natural calamities,
d) other circumstances affecting the public interest. In conclusion, Section 11 of the Electricity Act 2003 sets out the directions for generating companies to ensure optimal fuel, compliances, standards of performance, power purchase agreements, open access, renewable energy, etc
Sec-11 Directions to the generating companies
1) China and Pakistan decided to make China Pakistan economic corridor. The agreement is not only about roads but has maximum investment in the energy sector. Major chunk of investment is for the energy projects like thermal, hydro, wind, solar, etc. In 2015 they signed the China Pakistan energy Framework agreement which inter-alia spoke about timely payment and provisions of electricity.
2) in 2018 the massive hydro and thermal power projects of China became operational in due course and China started supplying electricity. Pakistan's economy was unable to pay for the electricity that they were receiving from China. This non-payment resulted in Pakistan facing severe blackouts. The Chinese companies could save the crashing economy of Pakistan but the government was unable to do it.
3) however India did not repeat this mistake. When electricity act 2000 was in the verge of formation, the energy project of 1991 was reminisced, which spoke about deal licensing and setting up an open market and making it free for the generating companies to set up electricity. However, government was concerned about the public interest security and the authority of the government post de-licensing which is why section 11 was included in the electricity act.
4)It provides that generating companies in extraordinary circumstances have to operate and maintain a generating station in accordance with the directions of the government. There are four situations in which government can issue such directions. These include:
a) Threat to the security of the state;
b) threat to public order and morality;
c) Natural calamity- during lack of electricity generating companies can be asked to compulsorily produce electricity for the supply to, and generation from a few regions;
d) other circumstances affecting the public interest.
eg) sweltering heat, and economic growth.
5) however post issuing directions if the generating company has to incur additional costs the solution has been provided in the electricity act itself which says that independent regulatory commissions can offset the adverse financial impact through several means concerning supplementary power purchasing agreements or others.
6) The central government has exercised the section 11 option twice, once on 5th May 2022 when the government issued an order directing all the imported coal-based power plants to operate at full capacity up to October 2022 and, the second order was when the government realize that there would be additional 20% demand for electricity. So it has been directed that all imported coal-based power plants will be operational in full capacity providing national security.
Directions are given to generating corporations, which are in charge of producing power, in Section 11 of the power Act of 2003. These aspects are covered by the provisions in this section:
In order to maximize overall efficiency and economics of power generation, the producing business must work to maintain an ideal fuel mix. The availability, quality, and economics of different fuels must all be considered while choosing the fuel mix.
Grid discipline: The generating company must adhere to the grid discipline code established by the Central Electricity Regulatory Commission (CERC) or the State Electricity Regulatory Commission (SERC), depending on the circumstance .Performance standards: With regard to the operation and upkeep of generating stations, transmission lines, and distribution systems, the generating firm shall adhere to the performance criteria set forth by the CERC or the SERC.
Grid connectivity: In accordance with the grid standards outlined by the CERC or the SERC, the producing business must guarantee grid connectivity of its generating station with the transmission system or distribution system, as applicable.
Power purchase agreement: For the sale of the energy produced by its producing station, the generating firm must enter into a power purchase agreement with the distribution licensee or any other person, as the case may be.Open access: In accordance with the requirements of the Act and the rules enacted thereunder, the producing company shall grant open access to its transmission lines or distribution system, as the case may be.
Renewable energy: In compliance with the renewable purchase obligation outlined by the CERC or the SERC, the producing business shall make an effort to produce power from renewable sources.
Energy efficiency: The generating business must encourage power efficiency and energy conservation.
In conclusion, Section 11 of the Electricity Act of 2003 lays out the guidelines for producing businesses to follow in order to maintain the best fuel mix, adherence to grid discipline and performance requirements, grid connection, power purchase agreements, open access, renewable energy, and energy conservation.the 2003 Electricity Act's Section 11
Section 11 of the Electricity Act 2003 empowers the appropriate government to issue directions to generating companies in matters related to the generation, supply, and use of electricity. These directions are aimed at ensuring the efficient and reliable operation of the power system.
Section 11 of the Electricity Act states that the under extraordinary circumstances, the government can ask power generating companies to operate and maintain output in accordance with directions given.
For the purposes of this section, the expression “extraordinary circumstances” means circumstances related to threat to security of the state, public order or natural calamity or such other circumstances arising in the public interest.
The section also states that an appropriate commission may consider offsetting the adverse financial impact of the directions on any generating company in such manner as it considers appropriate.
In one recent Instance The Power Ministry has issued directions under Section 11 of the Electricity Act, 2003 (“Direction”), mandating all imported coal-based generating power- plants (“Gencos”) to operate and generate at their full capacity. The Direction also mandates that where the relevant Genco is undergoing corporate insolvency resolution process (“CIRP”), under IBC, the resolution professional shall take steps to make such plants functional.
In the Case of G.M.R. Energy Limited vs Karnataka Electricity, it was held that the State Government can only give directions under Section 11(1) for operation and maintenance of the generating station in accordance to its directions. The State Commission alone has been empowered under Section 11(2) of the Electricity Act to offset the adverse financial impact on the generating company as a result of operating and maintaining the power plant as per the directions of the State Government under Section 11(1). The State Government is not empowered to determine the rate or terms and conditions at which the generating companies will supply power to the State Grid against directions u/s 11(1) of the Act. The rate specified by the State Government in the order regarding direction under Section 11(1) is only a rate at which the distribution licensees have to make payment to the generating company Appeal no. 37 of 2013 and Appeal no. 303 of 2013 in the interim period till the State Commission under Section 11(2) decides the compensation to be given to the generating company, if any, to offset the adverse financial impact of the directions of the State Government under Section 11(1).
Section 11 of the Electricity Act 2003 provides directions to generating companies, which are responsible for the production of electricity. This section contains provisions related to the following aspects:
Fuel mix: The generating company shall strive to maintain an optimal fuel mix in the interest of the overall efficiency and economy in power generation. The fuel mix shall be determined keeping in view the availability, quality, and economics of various fuels.
Grid discipline: The generating company shall comply with the grid discipline code specified by the Central Electricity Regulatory Commission (CERC) or the State Electricity Regulatory Commission (SERC), as the case may be.
Standards of performance: The generating company shall comply with the standards of performance specified by the CERC or the SERC in relation to the operation and maintenance of generating stations, transmission systems, and distribution systems.
Grid connectivity: The generating company shall ensure grid connectivity of its generating station with the transmission system or distribution system, as the case may be, in accordance with the grid standards specified by the CERC or the SERC.
Power purchase agreement: The generating company shall enter into a power purchase agreement with the distribution licensee or any other person, as the case may be, for the sale of electricity generated by its generating station.
Open access: The generating company shall provide open access to its transmission lines or distribution system, as the case may be, in accordance with the provisions of the Act and the regulations made thereunder.
Renewable energy: The generating company shall endeavor to generate electricity from renewable sources of energy in accordance with the renewable purchase obligation specified by the CERC or the SERC.
Energy conservation: The generating company shall promote energy conservation and efficient use of electricity.
In summary, Section 11 of the Electricity Act 2003 sets out the directions for generating companies to ensure optimal fuel mix, compliance with grid discipline and standards of performance, grid connectivity, power purchase agreements, open access, renewable energy, and energy conservation.
Section 11 of the Electricity Act 2003 in India pertains to the "Duty of Licensees to Supply Electricity on Request." It states that every distribution licensee, upon receiving an application for the supply of electricity, shall supply electricity to the applicant within a reasonable time and in accordance with the provisions of the Act. This section emphasizes the obligation of distribution licensees to provide electricity to consumers upon request.
In addition to this explanation I would like to simplify the pointers which explains the CERC issued directions to Gen cos based on domestic coal under Section 11. The key directions are as follows:
1. All imported coal-based power plants shall operate and generate power to their full capacity. This is to ensure adequate supply of electricity and meet the growing demand.
2. Gencos with domestic coal-based plants supplying electricity under Section 63 of the Electricity Act, 2003, shall ensure maximum utilization of their installed capacity. This is to optimize the utilization of domestic coal resources and reduce reliance on imported coal.
3. Gencos shall maintain adequate coal stock to meet their generation requirements for at least 15 days. This is to ensure a reliable supply of electricity and prevent power outages due to coal shortages.
4. Gencos shall import coal only up to 10% of their requirement for blending and meet the growing demand for electricity. This is to balance the use of imported and domestic coal and promote the use of domestic coal.
4. The fixed charge for imported coal-based power plants shall be as per the Power Purchase Agreements (PPAs) or as has already been agreed mutually between the generating company and the procurers. This is to ensure fair compensation for gencos and protect the interests of consumers.
Section 11 of the Electricity Act, 2003, states that under extraordinary circumstances, the government can ask power generating companies to operate and maintain output in accordance with directions given.
Section 11 of the Electricity Act, 2003, states that under extraordinary circumstances, the government can ask power generating companies to operate and maintain output in accordance with directions given. In extraordinary circumstances, the state Government or the central government, will give direction and take can over the control of the generating company.
The extraordinary circumstances are :
1. Threat to the security of the state.
2. Public Order
3. Natural calamity
4. Other circumstances arising in public interest.