Power hurdles: Consumers need to wait before they can choose supplier

Latest amendments to the Electricity Act might not be enough to remove existing obstacles.

Providing consumers the right to choose their preferred power supplier would be challenging even after the amendments to the Electricity Act. Lack of multiple power distribution companies (discoms) in several states, tepid interest for privatisation of discoms and no overarching regulations are some of the hindrances in the path of a dynamic electricity retail market.

The latest amendments to the Electricity Act, 2003 seek to abolish power “distribution licence” and allow any company to supply electricity in an area, after necessary regulatory approval. With this, the Centre plans to end the monopoly of existing discoms, which are mostly state-owned entities,