Several reforms-linked measures in the power distribution space are likely to be discussed at the upcoming Monsoon Session of Parliament, it is reliably learnt.
According to reports, The Electricity (Amendment) Bill 2021, which, among other things, seeks to empower power consumers, is likely to be introduced in the Monsoon Session that is scheduled to start on July 19, 2021 and end on August 13, 2021.
Among the various reforms proposed is the empowerment to consumers to choose from multiple service providers, as is currently the practice with telecom services.
To enable the participation of multiple players, the electricity distribution sector will be declicensed, just like power generation is today. Also, there is move to separate the “carriage” and “content” aspects of power distribution. This will enable multiple players on the “content” side, which represents the actual power supply made to consumers. “Carriage” refers to management and upkeep of the power sub-transmission and distribution infrastructure. “Carriage” and “Content” is also referred to as “Wire” and “Supply”, respectively.
Regarding delicensing of electricity distribution, it is learnt that a Cabinet note has been circulated to all ministries concerned, and they have approved it. However, the law ministry has a couple of queries, it is reported.
The Electricity (Amendment) Bill 2021 also prescribes rights and duties of electricity consumers. According to an industry source, strict penalties have been proposed for power theft and pilferage. Besides, penalties for non-compliance of RPO obligations are also likely to become stiffer.
There is also a provision for “green tariff” where consumers can opt for getting supplied electricity generated from renewable energy sources only. It may be mentioned that Tata Power has introduced “green tariff” in Mumbai. Till around June 8, 2021, a total of 37 consumers had opted for green electricity, based on “green tariffs” approved by Maharashtra Electricity Regulatory Commission. (Read full story).
