The Electricity (Amendment) Bill 2022 that was tabled in Parliament on August 8, 2022, and immediately referred to a Parliament Standing Committee, is likely to be taken up for passage in the ensuing Winter Session of Parliament.
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.
Also read: Electricity (Amendment) Bill, 2022, Tabled In Parliament, Referred To Standing Committee
Carriage & Content
It may be mentioned that the Electricity Act 2003 has the provision of multiple operators in a given distribution circle. However, as per the extant provisions, each operator has to set up its own distribution network.
In the proposed Amendment Bill, there is likely to be separation of “carriage and content”, also known as “wire and supply”, respectively. What this means is that the distribution network (carriage or wire) will be owned and managed by one entity, which would be the state government power distribution utility. The service of providing electricity to consumers (content or supply) can have the participation of several entities. This would engender competition, which is in the ultimate interest of the consumer.
Featured photograph for representation only
