The Centre is expected to bring the Electricity Amendment Bill 2022 for consideration and passage in the Winter Session of the Parliament towards the end of 2022.
The Bill, introduced in Lok Sabha on August 8, 2022, aims to provide consumers with options to choose between multiple service providers in an area and create competition in the power distribution sector. However, it was referred for scrutiny to the Parliamentary Standing Committee on Energy on the same day.
Union Power Ministry RK Singh said, ”We hope that we will be able to bring the Electricity Amendment Bill 2022 for consideration and passage in the Winter Session of the Parliament (likely to be held in November-December 2022).”
Singh also said that currently there is no provision to stop subsidies to any section of consumers in the Bill. "It was provided by the Electricity Act 2003 that there can be more than one distribution utility in an area. But other discoms would have to supply power through its own network. Now we have provided for sharing the distribution network (common carrier). It (common carrier) would charge for wheeling power of other discoms," the minister added.
According to the Electricity Act 2003, a utility cannot be denied a licence if they apply for a distribution licence in one area. But, Singh added, they did not come because they had to establish their own distribution network.
The new provision in the Act will remove public as well as private monopolies in the power distribution sector, said Singh, as the customers will have options to choose from multiple service providers in an area. He further explained that the competition in the power distribution sector will also improve the quality of services.
Moreover, the government has also set an ambitious target for renewable capacity expansion in the long term and this would require substantial investment by both domestic and overseas investors alike. The rollout of the proposed amendments through a consensus-based approach would go a long way in overhauling the weakest link in the nation's power supply chain.