Home » Policy » Power Ministry floats draft Electricity Act; invites suggestions within 21 days

Power Ministry floats draft Electricity Act; invites suggestions within 21 days

Supply of quality power at affordable prices is essential for sustained growth of the economy of the country.   For further development of the power sector, Ministry of Power has issued draft proposal for amendment of Electricity Act, 2003 in the form of draft Electricity Act (Amendment) Bill, 2020 for comments / suggestions from Stakeholders on 17th April 2020. Comments / observations / suggestions have been invited from stakeholders within twenty one days.

Major amendments proposed in the Electricity Act are as follows.

Viability of  Electricity Distribution companies (Discoms)

  1. Cost reflective Tariff: To eliminate the tendency of some Commissions to provide for regulatory assets,  it is being provided that the Commissions shall determine tariffs that are reflective of  cost so as to enable Discoms to recover their costs.
  2. Direct Benefit Transfer:  It is proposed that tariff be determined by Commissions without taking into account the subsidy, which will be given directly by the government to the consumers.

Sanctity of Contracts

  1. Establishment of Electricity Contract Enforcement Authority:  A Central Enforcement Authority headed by a retired Judge of the High Court is proposed to be set-up with powers of the Civil Court to enforce performance of contracts related to purchase or sale or transmission of power between a generating, distribution or transmission companies.
  2. Establishment of adequate Payment Security Mechanism for scheduling of electricity – It is proposed to empower Load Dispatch Centres to oversee the establishment of adequate payment security mechanism before scheduling dispatch of electricity, as per contracts.

Strengthening the regulatory regime

  1. Strengthening of the Appellate Tribunal (APTEL): It is proposed to increase the strength of APTEL to seven apart from the Chairperson so that multiple benches can be set-up to facilitate quick disposal of cases. It is also proposed to further empower the APTEL to enforce its decisions.
  2. Doing away with multiple Selection Committees: It is proposed to have one Selection Committee for selection of Chairpersons and Members of the Central and State Commissions and uniform qualifications for appointments of Chairperson and Members of Central and State Electricity Regulatory Commissions.
  3. Penalties: In order to ensure compliance of the provisions of the Electricity Act and orders of the Commission, section 142 and section 146 of the Electricity Act are proposed to be amended to provide for higher penalties.

Renewable and Hydro Energy

  1. National Renewable Energy Policy: It is proposed to provide for a policy document for the development and promotion of generation of electricity from renewable sources of energy.
  2. It is also proposed that a minimum percentage of purchase of electricity from hydro sources of energy is to be specified by the Commissions.
  3. Penalties: It is being further proposed to levy penalties for non-fulfilment of obligation to buy electricity from renewable and/or hydro sources of energy.

Miscellaneous

  1. Cross border trade in Electricity: Provisions have been added to facilitate and develop trade in electricity with other countries.
  2. FranchiseesandDistribution sub licensees:  Many States Distribution Companies have been assigning the task of distribution of electricity in a particular area or city to Franchisees / Sub-Distribution Licensees.  However, there was a lack of clarity regarding the legal provisions related to this.  It is proposed to provide that the Distribution Companies, if they so desire, may engage Franchisees or Sub-Distribution Licensees to distribute electricity on its behalf in a particular area within its area of supply, however, it will be the DISCOM which shall be the licensee, and therefore, ultimately responsible for ensuring quality distribution of electricity in its area of supply

About ppb

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

Ministry of Corporate Affairs revises threshold limits for value of Assets and Turnover for purposes of combination filings under Competition Act, 2002 as a step towards ‘Ease of doing Business’

The Ministry of Corporate Affairs has revised the existing threshold value of assets and turnover ...

Make in India not only for India but for the world: Power and New & Renewable Energy Minister Shri R. K. Singh exhorts manufacturing industry

The Union Minister for Power and New & Renewable Energy Shri R. K. Singh has ...

Union Minister Pralhad Joshi launches “Coal Logistics Plan and Policy”

Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi has launched a groundbreaking ...

Government amends Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 to ensure optimum utilization of available power generating capacity

The Government of India has amended the Electricity (Late Payment Surcharge and Related Matters) Rules of ...

MoS Rajeev Chandrasekhar holds Digital India Dialogues in Mumbai on the Principles of the Digital India Act

Union Minister of State for Skill Development and Entrepreneurship and Electronics and IT Rajeev Chandrasekhar ...

Details of Fund Collected Under District Mineral Foundation by Different States

The Central Government under Section 20A of the MMDR Act has issued directions and circulated ...

Policy for Promotion of Software Exports

As per National Association of Software & Services Companies (NASSCOM), exports from Indian Information Technology/ ...

Regulation of Digital Media

To help achieve the aim of making Internet Open, Safe and Trusted and Accountable and ...

Measures taken by Government to boost exports

The Government has taken the following measures to boost exports and reduce trade deficit: Foreign ...

Union Minister Dr Jitendra says, four units of 1000 MW each of Kudankulam Nuclear Power Plant will be completed by 2027

Union Minister of State (Independent Charge) Science & Technology; Minister of State (Independent Charge) Earth ...

WP2Social Auto Publish Powered By : XYZScripts.com