The Electricity Amendment Bill, cleared by the Union Cabinet last Wednesday, enables competition in the retail distribution of power by allowing the use of other distribution licensee networks.
Mumbai: The Electricity Amendment Bill, due to be presented in the Parliament on Monday, it proposes sweeping changes to the weakest link in the electricity distribution sector, enabling competition, enhancing the security of payments, and giving more power to regulatory commissions.
The bill, passed by the Union cabinet last Wednesday, allows competition in retail electricity distribution by allowing the use of the network of other distribution concessionaires. Even if a regulatory commission fails to decide whether or not to grant the distribution.
The bill also provides for minimum price caps to avoid predatory prices charged by energy suppliers and a maximum price to protect consumers.
The bill also proposes to allow load-sharing centers to stop supplying electricity to utilities that do not maintain adequate bank guarantees in favor of the power plants to which they are connected.
This decision aims to solve the recurring problem of distribution companies not paying production companies.
The amendment to the Electricity Act proposes to address the laxity of national electricity regulatory committees in setting adequate tariffs and allowing for timely reviews. The bill stipulates that regulators must initiate an on-the-go tariff procedure in the event that distribution companies do not submit petitions. The bill contains provisions on the dismissal of the members of the supervisory committees in the event of an intentional violation of the legal provisions.
The bill proposes to extend the powers of the civil court to regulatory committees, meaning they can seize property and order property to carry out orders.
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