Power minister Veerappa Moily will be holding a meeting with state electricity regulatory authorities on Wednesday. In view of the current power situation, a discussion on proposed amendment in Electricity Act 2003 will be taken up during the discussion. A possible amendment in the electricity act to provide state regulators with more teeth will also be a part of their agenda.
The ministry is also likely to moot stricter penalty provisions for states that are found to be repeatedly overdrawing from their respective grids.
While the attorney general has said that CERC may hike tariffs irrespective of the earlier power purchase agreements, the power ministry begs to differ. Moily indicated that sanctity of the PPAs can't be meddled with easily and can be revisited only on a case to case basis.
Moily said, "There is sanctity for the signing of the PPA, it can not be meddled with that easily and you know when there is a need that has to be examined case by case on exceptional circumstances. I don't think as a matter of routine you can revisit the PPAs."
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