Which of the following statements is/are correct with reference to the draft Electricity (Late Payment Surcharge) Amendment Rules, 2021?

Which of the following statements is/are correct with reference to the draft Electricity (Late Payment Surcharge) Amendment Rules, 2021?

A. The power generating companies are being given an option to sell power to third parties and recover costs.

B. The claim would be retained on payment of fixed charges or capacity charges from the distribution licensee, after giving a notice of at least 15 days to the distribution licensee.

C. Both A & B

D. None of these

Explanation:

The Ministry of Power has proposed to amend rules for facilitating electricity producers to sell power to a third party, which it said can pare fixed costs and cut retail tariff for end consumers. The power generating companies are being given an option to sell power to third parties and recover costs. To this extent, the fixed cost burden of the distribution licensee shall be reduced, the ministry stated. The claim would be retained on payment of fixed charges or capacity charges from the distribution licensee, after giving a notice of at least 15 days to the distribution licensee.