The Ministry of Power has notified the Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021 vide notification dated October 22, 2021. The Rules shall be applicable to generating company and transmission licensee.


The Rules has laid down provisions for adjustment in tariff when there is change in law, in the following manner:

  • When there is a change in law, the monthly tariff shall be adjusted and be recovered in accordance with these rules to compensate the affected party so as to restore such affected party to the same economic position as if such change in law had not occurred.
  • For this, the generating company or transmission licensee which intends to adjust and recover the costs due to change in law, shall give a three weeks prior notice to the other party about the proposed impact in the tariff or charges.
  • The affected party shall furnish to the other party, the computation of impact in tariff or charges to be adjusted and recovered, within thirty days of the occurrence of the change in law or on the expiry of three weeks from the date of the notice.
  • The recovery of the proposed impact in tariff or charges shall start from the next billing cycle of the tariff.
  • The generating company or transmission licensee shall, within thirty days of the coming into effect of the recovery of impact of change in law, furnish all relevant documents along with the details of calculation to the Appropriate Commission for adjustment of the amount of the impact in the monthly tariff or charges.
  • Further, a formula has been provided under The Schedule to the Rules, to calculate adjustments in the monthly tariff due to the impact of Change in Law.


*Tanvi Singh, Editorial Assistant has reported this brief.

Must Watch

SCC Blog Guidelines

Justice BV Nagarathna

call recording evidence in court


Join the discussion

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.