The Electricity ( Amendment ) Bill 2021 in India

 The Electricity ( Amendment ) Bill 2021 


The Government of India has taken  up new Electricity (Amendment) Bill 2021 to be introduced, 


Supply of electricity to the doorstep of consumer is a supply chain, which starts from source of power generation and in case of thermal power generation the  supply chain may go upto fossil fuel (Coal/ oil/ gas) or radio-active material in case of Nuclear power plants. Obviously, Electricity (Amendment) Bill amends the electricity part of this supply chain unlike the Special Economic Zone (SEZ) Act, which amended other laws as well to enforce reform measures.  




What are the amendments ?


The Electricity (Amendment) Bill 2021 seeks to propose amendments to the Electricity Act 2003.  The 2003 Act governs the power sector structure and policy. It recommends the generation, distribution, transmission, trading and use of electricity. It also sets rules and regulations for regulatory authorities in the state and central departments of the power sector. The first few amendments introduced to the act were in 2014. 


The 2020 amendment Bill has proposed the setting of a national selection committee instead of a separate selection panel for the appointment of state electricity regulatory commissions(SERC”s) 


It also seeks to establish an Electricity Contract Enforcement Authority(ECEA) , Which will enforce a performance of contracts in sale, purchase and transmission of power and proposes direct benefit Transfer(DBT), a scheme launched in 2013 aiming to transfer subsidies directly in to the beneficiaries’ accounts. 


This amendments proposes tariff and subsidy related measures which aim to ease the financial health of discos, which are mostly state owned. 


It further advocates a renewable energy approach and has appointed the central government in conjunction with state governments to prepare for a national Renewable Energy Policy for promotion of generation of electricity from renewable sources. 


The Good features of the proposed amendment bill are Electricity distribution is delicensed. It gives consumers a choice to choose distribution company in his area. There is provision of universal service obligation fund, which shall be managed by a Government Company. This fund shall be utilised to meet any deficits in cross subsidy in that area or other area. In case of supply through pre-paid meters security deposit would not be required. Appellate Tribunal for Electricity (APTEL) is being strengthened by increasing number of members, The domains, from where Chairperson and members of Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERC) would come, have been described. Keeping in view the national climate change goals, the responsibility of fixing renewable power obligation (RPO) is shifted from State Commissions to the Central Government. As the interconnected power system is getting more complex with addition of renewable generators, the role of Load despatch centres is gaining importance. At the same time disputes related to despatch of power are increasing, Adjudication of Load despatch centre related disputes have been included in the functions of Regulatory Commissions. The Regulatory Commissions orders would now be executable as decree including attachment of property, arrest and detention in prison. With Member (Law) in the Commission, these powers will be exercised appropriately resulting in better enforcement. Penalty for contravention of the provisions of the Act have been increased upto Rupees one Crore. Non-fulfilment of RPO will attract stringent penalties as per the proposed amendments. 



Comments

Post a Comment

Popular posts from this blog

Green Hydrogen to steer Indian Economy

Image
  Green Hydrogen to steer Indian Economy Green hydrogen is critical to India’s economic development and net zero ambitions. India is planning a massive expansion of green hydrogen production to control its dependence on energy  imports and to halt the economy off fossil fuels.  The recent floods, earthquakes and erratic rainfall are evidence of the unpredictable damages to human lives, businesses, and private and public properties. India has taken an ardent strategy to move away from dependence on fossil fuels to renewable sources progressively. Economic activities adhering to cleaner sources of energy would have a positive impact on protecting the environment and minimising havoc created by climate changes. India is one of the global leader who paid attention to climate change and has taken ambitious pro-active steps. Green hydrogen is widely expected to play a major role in decarbonising heavy industries, including oil refineries, steel mills and fertiliser plants. Indi...
Read more

Unprecedented Heatwave Shatters Records - Climate Crisis Escalates

Image
  Unprecedented Heatwave Shatters Records - Climate Crisis Escalates We are facing an alarming situation that demands immediate attention. ERA5, the EU-funded Copernicus Climate Change Service (C3S), has issued a dire warning: the world is undergoing an unprecedented climate crisis. The first three weeks of July have shattered all records, emerging as the hottest three-week period in history. But this alarming trend doesn't stop there – the entire month is set to become the hottest July and the hottest month ever recorded.  These extreme temperatures have plunged vast regions into the throes of heatwaves, wreaking havoc across North America, Asia (including China and India), and Europe. Wildfires have ravaged countries like Canada and Greece, causing severe damage to our environment, economies, and the health of millions. For North America, Asia, Africa, and Europe, this summer has turned cruel, and for our planet, it's an unfolding disaster. What's more, this crisis is ...
Read more