Italy's Enel Group looks to enter India's power distribution market

Italian electricity distributor Enel Group is considering the possibility of entering India's power distribution market as the country moves to reform its power sector. 

Speaking at a press conference on Saturday, Enel Group CEO Francesco Starace said, "We are interested because finally, this big country is making it possible for private ownership of power distribution assets." 

The company has already begun electricity generation in India and is also looking to "cover" the distribution process, Starace stated, adding that he expects energy consumption per capita to grow in many parts of the country, Bloomberg reported.

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In India, power distribution happens through three modes - state distribution companies, captive sources and open access.

The Centre had in April this year come out with the first set of draft amendments to the Electricity Bill, 2003 and had asked the states to submit their comments.

In August, the power ministry circulated draft Electricity (Late Payment Surcharge) Amendment Rules, 2021, seeking comments for the same.

The draft amendment rules were put on ministry's website. The Electricity (Amendment) Bill is expected to de-license power distribution in India and further set the stage for new players to enter the space.

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It also sets rules as well as provisions for regulatory authorities in power sector's state and central departments. With this bill the ministry also proposes to take one more step towards reducing the burden of the distribution licensee in order to reduce the retail tariff for the electricity consumers.

It seeks to enable power consumers to choose from multiple service providers as in the case with telecom services.

Meanwhile, the Electricity (Amendment) Bill, 2021 has been facing stiff resistance even before its introduction in the Parliament.

West Bengal Chief Minister Mamata Banerjee also wrote a letter to Prime Minister Narendra Modi, protesting against the Centre's decision to table the new bill in the Parliament despite reservations raised by the state governments. Banerjee called the new amendments "anti-people."