Salient Features of NEP:

Access to electricity:

The policy not only envisages access to electricity for all but it also emphasizes in which all consumers, particularly those who are ready to pay a tariff that reflects efficient costs have the right to get uninterrupted 24 hour supply of power.

Targeted subsidies:

The Policy recognizes the requirement for ensuring recovery of cost of service; the cost of electricity supplied and associated O&M expenses from consumers to make the power sector sustainable.  The existing cross- subsidies for other categories of consumers required to be decreased gradually and progressively. This is essential for achieving the targeted expansion in access to electricity to all the households and for ensuring the commercial viability of the utilities.

Therefore, NEP provides in which the consumers below poverty line, who consume below a specified level (about 30 units per month), will receive special support within terms of cross-subsidized tariffs. Such tariffs will be at least 50% of the whole cost of supply. The State Governments would have discretion to provide subsidy to any other category of consumers in accordance along with the provisions of the Act for that they will have to compensate the power utilities through the State budget.