Section 63 of EA 2003, Electricity Act : Section 63: Determination Of Tariff By Bidding Process

Explanation using Example

A power distribution company in India is looking to purchase electricity to meet the demand of its consumers. The company initiates a transparent bidding process inviting power generation companies to bid for supplying electricity at a competitive tariff. Company A wins the bid by offering the lowest tariff for supplying electricity. Despite the bid being lower than the usual rates determined under Section 62 of the Electricity Act, 2003, the appropriate Electricity Regulatory Commission is required to adopt this tariff because it was arrived at through a transparent bidding process, as mandated by Section 63 of the Electricity Act, 2003. This ensures that the distribution company gets electricity at a competitive rate, potentially leading to lower charges for consumers.