Government to introduce Electricity Amendment Bill in Parliament | Fusion - WeRIndia

Government to introduce Electricity Amendment Bill in Parliament

Government to introduce Electricity Amendment Bill in Parliament

To make reforms in the power sector, the government wants to amend the existing electricity bill and has made proposals to this.

As per sources, the government would like to introduce the Electricity Amendment Bill 2021 in Parliament in the current Budget session.

The government says that the Bill provides choice to consumers for deciding their service provider like they are doing in the case of telecom service providers.

The Bill paves the way to the entry of private players in the sector to augment competition. Currently, power distribution companies are monopolies since most of them are operated by the state. And a few private players are also operating in the segment.

However, most of them are monopolies, consumers have no option to choose their service provider. As a result, they have to compromise with the service that is given by the existing power distribution companies.

The Bill aims to reduce the entry barriers for private players. As a result, multiple distribution companies will be allowed to operate along with existing companies. Due to increasing competition, quality service is provided, and consumers can choose their desired service provider.

The central government prescribed certain eligibility criteria for the companies to operate. They shall have to register with a suitable Commission to supply the electricity. The Commission can reject the company if it does not meet the eligibility criteria. On the other hand, if it meets the criteria, it shall be registered within 60 days, after that, the company can start operations.

The Amendment Bill also proposes the unification of regional grids for the reinforcement of the national grid. Thus, the national grid will become more secure and dependable.

Furthermore, the Bill also proposes higher penalties for violations of the Act and non-adhering to the Commission’s orders.

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