 "Bill to amend electricity Act tabled in Lok Sabha")
The amendments aim to provide those consuming less than one megawatt a choice of power distribution companies, separate the content and carriage businesses, bring renewable energy into the mainstream and rationalise rates.
The Bill also aims to empower power generators to sell the surplus power generated within a state to entities outside it.
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"Opening the sector will ensure the supply of power is in line with market realities," said an executive at a distribution company.
The proposed amendments to the Act seek to segregate carriage (distribution network) from content (electricity supply business) in the power sector. The government will introduce multiple supply licensees in the content business and continue carriage as a regulated business. The Bill also has a 'duty to connect, supply to request' clause for last-mile supply.
With separate businesses, the onus of the development of the network will rest with the carriage provider.
The provisions on 'tariff policy' are proposed to be made mandatory for the determination of rates.
The Bill also envisages the timely filing of tariff petitions by utilities, as well as their disposal within a specified period.
The amendments also seek to empower appropriate commissions to initiate suo-motu proceedings to determine the rate in case a utility/generating company doesn't file its petition on time. It also gives the load despatch centre the power to penalise those not complying with its directions on power supply. To give renewable energy into the mainstream, there are provisions for a national renewable energy policy, in addition to the existing national electricity policy.
To increase procurement, the Bill provides for the setting up of renewable energy generating stations by distribution companies.