Electricity (Amendment) bill, 2020 to bring about reforms in power sector

June 27, 2020

The Government of India is to bring about major reforms in the power sector by making amendments to the Electricity Bill. The Minister of State for Power Shri R K Singh recently held a press meet to clarify the misconceptions about the reforms

Highlights

The amendment will not make any changes to the powers of tariff fixation. The powers of tariff fixation are to stay with SERCs (State Electricity Regulatory Commission). The amendment bill holds the following broad objectives

To promote Ease of Doing Business
To promote Green Power
To enhance sustainability of power sector
To ensure consumer centricity

Major Amendments

The following amendments have been included in the draft bill

Establishment of Payment Security mechanism to schedule electricity. The Load dispatch centres are to oversee the establishment of the mechanism.
Electricity contract Enforcement Authority is to be established. The authority will be headed by a retired judge of high court. The authority is to enhance sanctity of contracts.
A minimum percentage of purchase of electricity from the hydro sources are to be carried out by commissions appointed. This is to be done as India is a signatory of Paris Climate Agreement.
The bill also contains provisions for cross border trade in electricity
An option of distribution of sub licenses has been added.
The bill proposes to increase the strength of appellate tribunal (APTEL).

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