New Bill set to amend the Electricity Act, end licence raj in power supply

The Centre is ready with a Bill to amend the Electricity Act, 2003 to set the ball rolling on abolition of power “distribution licence” and allow any company to supply electricity to an area, after necessary regulatory approval. The move will also end the monopoly of existing power distribution companies (discoms), which are mostly  state-owned entities. It also implies that all areas will be thrown open to private discoms.

The amended terms as part of the Electricity Bill, 2021, will be tabled in the ongoing session of Parliament. Introducing a new section 24 (A), the draft Bill states: “Any company