Several states in India have opposed the Centre’s long-awaited Electricity Amendment Bill, 2021, which aims to seek to delicense power distribution and proposes certain amendments to the Electricity Act, 2003.
Moneycontrol took a look at the major proposals of the bill and the concerns raised by the states opposing it.
(i) Allowing the entrance of private players
The amendments seek to delicense power distribution, permitting private sector players to enter the sector as well as compete with government-run power distribution companies, i.e., discom.
(ii) Disputes and Penalties
The bill proposes the constitution of ECEA (Electricity Contract Enforcement Authority), where the ECEA have the sole authority to adjudicate disputes related to contracts in the electricity sector.
In addition, the bill proposes certain penalties for non-compliance committed by licensees in meeting Renewable Purchase Obligation (RPO). It has proposed for a selection committee to be formed to select the Chairperson and members of the Appellate Tribunal (APTEL), the central and state regulatory commissions (CERC, SERCs) as well as the ECEA.
Apart from metropolitan cities like Mumbai, Delhi and Ahmedabad, power supply in most parts of India are controlled by state-run companies.
West Bengal CM Mamata Banerjee referred to the bill as anti-people and said, “Power is too important a sector for such unilateral interferences, especially when electricity as a subject is in the Concurrent List.”
Shiv Sena MP Sanjay Raut criticized the bill saying it was in the country’s interest and that the states were not consulted on its provisions.
