The Electricity Amendment Bill, which is being finalised by the Government, is expected to de-license power distribution in the country and further open doors for a new set of players in this space, official sources said.
While this may open a new chapter in power sector reforms, the existing distribution companies will continue to function as usual even as they may see more competition.
End to monopolies
The new amendment Bill will put an end to the monopolies in the power distribution segment, whether Government or private monopolies, sources added.
Meanwhile, Power Minister RK Singh in response to West Bengal’s opposition to the amendment Bill said, “Licence Raj has to go. There should be a rule-based law.” He further added, “Why does she want to protect the monopoly? She has been briefed wrongly. Especially in Kolkata, the private companies have the highest tariffs.”
According to the sources, the Ministry has drafted a reply to the West Bengal Chief Minister but the letter has come to the Prime Minister, so the reply will be sent only when the letter comes to the Power Ministry. The draft of the Electricity Amendment Bill is under examination.,
Another provision of the Bill is the strengthening of the regulators — Central Electricity Regulatory Commission (CERC), State Electricity Regulatory Commission (SERC). More members are being added to the regulatory system, as per the Supreme Court order. Also the power will be given to the civil court, as per the sources.
Encouraging green energy
The third provision is to encourage green energy. “We have a renewable purchase obligation.
In addition, as the grids are sensitive, it is crucial to handle them properly. So the government is providing authority to the National Dispatch Centre to give directions to the other regional load dispatch centres to comply with all the safety measures.
“The draft note was circulated, after which there was a meeting so that every state gets enough opportunity to express their opinion.
“If the Discoms don’t follow the rules and if the regulators find that they are not following the rules, their registration can be cancelled. So it’s a law-based Bill,” the source said.