New bill to see change in power sector

The Bill proposes to amend the Electricity Act 2003 “with a view to enable competition, enhance the efficiency of distribution licensees to improve services to consumers and ensure sustainability of distribution networks by all licensees under the provisions of non-discriminatory open access”. for convenience of use”. of the electric field”.

This provision led to power engineers protesting over the alleged favor of private discoms over government entities.

Speaking to reporters after the introduction of the bill in Parliament, Singh rubbished all the apprehensions and allegations as “false”. He said that in order to ensure an equal opportunity, the government has proposed that both the maximum and minimum tariff should be fixed by the appropriate. commission

This will be the first time that a minimum tariff will be fixed for retail sale of electricity.

Regarding the concerns raised about the amendment on reducing or eliminating subsidies in the power sector, Singh said the bill does not make any provision on lower subsidies, but mandates the use of additional cross subsidy with a discom in a particular sector. Will happen. In another sector which requires subsidy.

“In case of issuance of license to more than one distribution licensee in one area of ​​supply, the State Government shall establish a Cross Subsidy Balancing Fund which shall be managed by a Government company or an entity designated by that Government in accordance with such rules in the State. The Commission may make in accordance with the provisions of this Act and the rules made by the Central Government,” the Bill states, adding that any surplus with the distribution licensee on account of cross subsidy or cross subsidy surcharge or additional surcharge shall be deposited in the Fund to be used for the same. Cross subsidy in the area or any other area of ​​supply will be done to meet the shortfall.

The Bill also proposes to increase the penalty for non-compliance of Renewable Purchase Obligations (RPO), but will make the offense of non-compliance of norms decriminalised.

It will also strengthen the functioning of National Load Despatch Center (NLDC) to ensure safety and security of the grid and economic and efficient operation of the power system in the country. Singh said that in the backdrop of incidents of cyber attacks on India’s power network, the need of the hour would be robustness and continuous monitoring of steps to boost the defense of power networks.

In April, private intelligence firm Recorded Future said that Chinese state-sponsored hackers targeted Indian power distribution stations near Ladakh in eight months. The government later said that the attacks were not successful and the defense system was strengthened.

According to the Statement of Objects and Reasons of the Bill, although the Electricity Act 2003 has facilitated the development of the power sector, as well as to promote the sustainability of the power sector, contract enforcement, payment security mechanisms, energy transition and competition to consumers. There is a need to provide alternatives and likewise it has become necessary to make some amendments in the Act.

“The Act also requires amendments to the importance of green energy for our environment in the context of global climate change concerns and our international commitments to increase the share of renewable energy,” it added. The statement further said that the Act makes it necessary to strengthen the regulatory mechanism, judicial machinery and bring about administrative reforms through better corporate governance of the distribution licensees.

The bill has attracted criticism from opposition parties and power engineers. Around 2.7 million electricity workers and engineers under the aegis of the All India Power Engineers Federation (AIPEF) on Monday protested against the introduction of the bill, alleging that a provision to supply electricity to multiple discoms in an area was made by government discoms. will harm. It further said that the bill would harm consumers and employees in the power sector.

Speaking to reporters here on allegations that the bill would have an impact on farmers, Singh said that there is no provision related to farmers in the bill.

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