The Electricity Amendment Bill 2022 has been introduced in the Lok Sabha. The changes are proposed to end distribution monopolies to provide customers with a choice and improve the business. However, the opposition, All India Power Engineers Federation and many others have objected to its passage. What is the Electricity Amendment Bill? Here is what you should know.
As per the bill, it provides a choice to electricity buyers. A new supplier can use existing infrastructure to supply power. However, critics say that it is indirect privatisation. There is a possibility of predatory pricing. Moreover, urban areas will have many licensees and loss-making areas will be neglected. The government assures that minimum area will be defined and maximum and minimum tariffs will be set.
- As per the bill, power regulators should set electricity tariffs every year. But, states fear that they would lose their control over regulatory bodies.
- The bill suggests the removal of members of regulatory bodies on the wilful violation or gross negligence of rules. States argue that pressure on regulators would impact smooth and independent functioning.
- The bill promotes green energy and ensures that discoms buy centre-mandated portion of power from renewable sources. However, it is being criticised as too much intervention by the centre.
Another amendment is to ensure timely payments by states to power plants. The government cites this as a measure to bring discipline among discoms. Defaulting discoms will suffer. The concern is that this could cause supply disruptions or grid instability.
