AFPThe government is likely to introduce the Electricity Amendment Bill 2021, which seeks to enable power consumers to choose from multiple service providers as in the case of telecom services, in the ongoing session of Parliament. A proposal to seek the Cabinet approval for the Electricity (Amendment) Bill 2021 was circulated in January this year and the draft law can be introduced in Parliament in the ongoing Budget session itself, a source said.
The bill seeks to de-license power distribution to reduce entry barriers for private players for creating competition in the segment, which would ultimately enable consumers to choose one from multiple service providers.
At present either state-run or private, power distribution utilities are monopolies and consumers have no option but to get electricity supply from one service provider available in an area of operation.
As per the proposed bill, the existing distribution company "may" continue but multiple distribution companies shall be allowed in the same area of supply.
Companies meeting the eligibility criteria prescribed by the central government will register themselves with appropriate commission before beginning supply of electricity and the commission shall be required to register the company within a period of 60 days.
The commission can reject the registration only if the company does not meet the eligibility criteria.
The amendment will also give effect to a Supreme Court judgement wherein it has been held that Electricity Regulatory Commissions must have a member with experience and qualifications in law.
In the field of renewable energy, the proposed amendments provide for state commissions to fix the Renewable Purchase Obligation (RPO) as per the trajectory prescribed by the Central Government.
The Bill also introduces a specific provision for penalties for not meeting the RPO, which are necessary in view of importance of green energy for environment in context of global climate change concerns and international commitments made by India to increase the share of renewable energy.
Besides, the Bill seeks unification of the regional grids.
With the unification of regional grids, it is imperative that the supervision over the national grid is strengthened to ensure its security and reliability, as a result of which certain responsibilities and powers are proposed to be conferred on the National Load Despatch Centre (NLDC).
To address the issues of delays in payments to power generation companies by power distribution companies, the bill proposes that no electricity shall be scheduled or despatched under a contract unless adequate security of payment has been provided.
Some of the other proposals in the Electricity Amendment Bill 2021 are higher penalties for offences under the Act and for non-compliance of orders of the commissions, put in place a mechanism for monitoring the compliance of of the provisions of the Act and rules and regulations made.
The bill seeks to de-license power distribution to reduce entry barriers for private players for creating competition in the segment, which would ultimately enable consumers to choose one from multiple service providers.
At present either state-run or private, power distribution utilities are monopolies and consumers have no option but to get electricity supply from one service provider available in an area of operation.
As per the proposed bill, the existing distribution company "may" continue but multiple distribution companies shall be allowed in the same area of supply.
Companies meeting the eligibility criteria prescribed by the central government will register themselves with appropriate commission before beginning supply of electricity and the commission shall be required to register the company within a period of 60 days.
The commission can reject the registration only if the company does not meet the eligibility criteria.
The amendment will also give effect to a Supreme Court judgement wherein it has been held that Electricity Regulatory Commissions must have a member with experience and qualifications in law.
In the field of renewable energy, the proposed amendments provide for state commissions to fix the Renewable Purchase Obligation (RPO) as per the trajectory prescribed by the Central Government.
The Bill also introduces a specific provision for penalties for not meeting the RPO, which are necessary in view of importance of green energy for environment in context of global climate change concerns and international commitments made by India to increase the share of renewable energy.
Besides, the Bill seeks unification of the regional grids.
With the unification of regional grids, it is imperative that the supervision over the national grid is strengthened to ensure its security and reliability, as a result of which certain responsibilities and powers are proposed to be conferred on the National Load Despatch Centre (NLDC).
To address the issues of delays in payments to power generation companies by power distribution companies, the bill proposes that no electricity shall be scheduled or despatched under a contract unless adequate security of payment has been provided.
Some of the other proposals in the Electricity Amendment Bill 2021 are higher penalties for offences under the Act and for non-compliance of orders of the commissions, put in place a mechanism for monitoring the compliance of of the provisions of the Act and rules and regulations made.
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2 Comments on this Story
 | Manu Manu19 minutes ago possible possible, you need to understand the process fully. the people at helm of affairs are not foolish. The cables and poles will be handled by a different holding company and electricity will be supplied by different distributor companies as per their power purchase and competitive plans. |
 | ARA3 hours ago Impossible- Impossible . How can telecom and Electricity sectors, be put on same pedestal? Let me explain= A cable or, Transmission-line ( NOTE- One line only, as they exist) brings power-lines to feed distribution-transformers. Outlets of these DISTRIBUTION Transformers are lines that feed indl. house-holds & other consumers at LV lines; for HV lines, LINES ARE DRAWN direct to indl. users & at such specified HV stipulated. NOW, for my house I find just one cable bringing power. WHAT WILL THIS BILL DO? WILL IT BE THAT, EACH AND EVERY DISTRIBUTION COMPANY WILL HAVE TO LAY OWN CABLES? Let me put in other words- If there are 4 Qualified power distributors for my area, WILL there be 4 different power-cables drawn to my door-steps? What kind of THUGLAK's Raj is this? WHOSE BRAIN-WAVE? Dig-up to lay EXTRA 3 more power-lines? Note= At any one time, only power-distributor will be able to supply power to me! - NOT FOUR! Or, wantonly extra cost added on to customers- to accommodate a SILLY IDEA? WHY? - Will it not be simpler to make it MANDATORY to install ONLY SMART-ENERGY METERS at all places- Including any temporary line, which we will witness during these, 'High-Pitched Poll campaigns?' [ usually it is ''free-for-all!''] THE moment strict actions are taken to measure via SMART-METERS and stipulate disconnection at once on non-payment of dues & with heavy penalty for any RE-CONNECTIONS, I assure you, things will near 100%![-in Tamil we say-'Even if you drop it in river ,measure!] |