A
Bill seeking to amend certain provisions of the Electricity Act, 2003 will be
tabled in Parliament next week, said Union Power Minister Piyush Goyal. The
Union Cbinet had approved the draft of the Bill on Wednesday.
 |
| Union Power Minister, Piyush Goyal |
Touted
as the next generation reforms in the power sector, it would not only give the
choice of supplier in the hands of small consumers of less than 1 mw, but also
allow distribution companies to procure power from their own renewable energy
plants to meet Renewable Purchase Obligation (RPO). Aimed at creating a
competitive market for retail buyers, open access would now allow consumers of
less than 1 mw to choose their supplier. Under the Electricity Act 2003, only consumers
with more than 1 mw demand can change their distribution company.
Besides,
under the proposed amendment, power generators, too, would be allowed to sell
surplus power outside a state.
A
major breather for the distribution sector is also the separation of content
and carriage business. This entails that building infrastructure for power
supply and the supply of power would be two different business entities.
Besides, any power supplier could use the infrastructure.
The
Bill has also an important insertion imposing ‘duty to connect, supply to request’, wherein last-mile supply
would be done keeping in mind the economics and viability.
The
Act proposes a National Renewable Energy Policy and a new ‘Renewable Generation
Obligation (RGO)’.
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