Electricity (Amendment) Bill, 2022, tabled in Parliament, referred to standing committee
- August 9, 2022
The much-awaited Electricity (Amendment) Bill, 2022, was introduced in the Lok Sabha on August 8, 2022, amid protests by opposition members. The Bill was then referred to a Parliamentary Standing Committee for further examination.
The Bill was introduced in the Lok Sabha by R.K. Singh, Union power minister who then urged Lok Sabha speak Om Birla to refer it to a parliamentary standing committee. The Bill has suggested amendments to the Electricity Act, 2003, with the primary objective of bringing technical and commercial efficiency to the power distribution sector.
The main feature of the Bill is to facilitate privatization of power distribution. The Bill has proposed multiplier suppliers of electricity in the same distribution area, and seeks to empower customers to choose their supplier, on the lines of mobile telephony, basic telephony or Internet services.
The Bill seeks to amend Section 42 of the Electricity Act, 2003 to facilitate non-discriminatory open access to the distribution network of a distribution licensee.
It also seeks to amend Section 14 of the Act to facilitate usage of distribution networks by all licensees under provisions of non-discriminatory open access with the objective of enabling competition, enhancing efficiency of distribution licensees for improving services and ensuring sustainability of the power sector.
It also seeks to amend Section 62 of the Act to make provisions vis-a-vis graded revision in tariff over a year besides mandatory fixing of maximum ceiling and minimum tariff by the appropriate commission. [Section 62 relates to the regulated tariff mechanism (RTM)]
It provides for amending Section 166 to strengthen functions that will be discharged by the regulators.
The Bill also seeks to amend Section 146 to convert the rate of punishment from imprisonment or fine to fine. The Bill, as tabled, will also amend Section 152 to facilitate de-criminalisation of offence as it would be mandatory to accept compounding.
Pro-people
In his official tweet, R.K. Singh, Union power minister, said “Electricity (Amendment) Bill, 2022 is pro-people and for the growth of our economy. There is no change in subsidy provisions. The state can give any amount of subsidy, even free power to any category of consumers. No provisions affecting farmers.”
Also read: Union Budget 2021-22: Industry Reactions
Reviving power distribution
The basic objective of the Electricity (Amendment) Bill, 2022, like various previous measures, is to revive the power distribution sector that is at present largely under state government control. State government discoms currently owe Rs.1 lakh crore to power generation companies. Whereas, states owe Rs.60,000 crore to discoms and another Rs.75,000 crore on account of the various subsidies that states had promised to their citizens.