The All India Power Engineers Federation has called for a strike on Monday in protest against what it described as the government’s bid to rush the Electricity (Amendment) Bill 2022 — which aims at ushering competition and accountability in electricity distribution, the weakest link in the power sector — without consulting stakeholders such as consumers, employees and farmers.

According to the Indian Constitution, electricity is a matter for both the Centre and the States i.e Concurrent list when it comes to legislating.

Before the electricity Act of 2003, most states relied on the State Electricity Boards to generate, distribute, and transmit electricity.

Cross-subsidies have reached an unsustainable level because of the political and economic climate.

In 1998, the Electricity Regulatory Commissions Act was enacted to remove state governments from the tariff-setting process.

Through private sector engagement and market competition, the Power Act of 2003 was enacted in order to further restructure the electricity market.

It is an Act of the Indian Parliament that was passed to reform the country's power industry.

The act intends to promote industrial competition while consolidating regulations governing energy generation, transmission, distribution, trade, and use.

The Electricity Act of 2003 is enforced by the Ministry of Power.

Captive generation is being freely allowed while generating is being delicensed.

Electricity supply metering has become required.

The laws governing electricity thefts have been strengthened.

Trading is recognised as a distinct activity with the protection of regulatory commissions having the authority to set maximum trading margins.

Stand-alone systems for generating and distribution are acceptable in rural and distant places.

State Electricity Boards must be separated by state governments.

It is now required to establish the State Electricity Regulatory Commission (SERC) and the Central Electricity Regulatory Commission (CERC).

a body established to hear appeals against CERC and SERC rulings.

National Electricity Policy and Tariff Policy will be developed by the central government.

The National Electricity Plan will be created by the Central Electricity Authority (CEA).

The act also acknowledged the function of renewable energy in standalone systems and the nation's National Electricity Policy.

The Bill includes provisions to enable state regulators to promptly revise tariffs, assure prompt payment to generator companies by new state utilities and existing state utilities, among other things.

It intends to reinforce the 2003 Electricity Act's regulatory and adjudicative mechanisms.

It aims to bring about administrative reforms through better distribution licensee corporate governance.

In order to give the end user better services, it aims to increase the effectiveness of distribution businesses (Discoms).

In light of worries about climate change worldwide and India's promises at COP 26, it also seeks to increase the share of renewable energy.

Changes proposed

One of the most important changes is to make it easier for all licensees to use distribution networks under the non-discriminatory open access principles.

This will promote competition, increase distribution licensee efficiency for bettering consumer services, and safeguard the long-term viability of the electricity sector.

Additionally, it seems to improve the National Load Despatch Center's (NLDC) ability to guarantee grid security and safety as well as the economical and effective running of the nation's power system.

Managing power purchases and cross-subsidies when there are many distribution licensees in the same supply region is another important modification.

Additionally, it suggests adding clauses requiring the appropriate commission to set the minimum and maximum tariffs and to revise tariffs in stages over the course of a year.

The changes also seek to encourage decriminalisation by requiring the acceptance of compounding and lowering the rate of punishment from imprisonment and/or fine to only fine.

The functions of the Forum of Regulators will be strengthened under the Bill as well.

The centre had previously stated that the Bill wouldn't be introduced until the clauses had been negotiated with the key players. These unions, however, have not been consulted.

Cross-subsidy elimination measures will hurt farmers and consumers.

The Bill now as written infringes on the authority of the states and disadvantages utilities because electricity is listed on the Concurrent List of the Constitution.

For further discussion, it should be sent to the standing committee of the ministry.

Source: TOI