After the passage of the Electricity (Amendment) Bill, 2021, like telecom services, electricity consumers will also have the freedom to choose between multiple service providers.
Electricity (Amendment) Bill, 2021
The Union Cabinet may consider approving the Electricity (Amendment) Bill, 2021 in the next few days. A source gave this information. After the passage of this bill, like telecom services, electricity consumers will also have the freedom to choose the option of their choice among many service providers. A government source said, the Electricity (Amendment) Bill, 2021 is likely to be placed before the Union Cabinet in the next few days for its consideration and approval. The government intends to bring this bill in the monsoon session of Parliament. The monsoon session will conclude on August 13, 2021.
According to the bulletin of the Lok Sabha issued on July 12, 2021, the Electricity (Amendment) Bill is also among the new 17 Bills that the government has listed for introduction in the current Parliament session.
Licensing will be terminated from distribution business
The bulletin said that with the proposed amendments in the electricity law, licensing will be abolished from the distribution business and there will be competition in it. Along with this, it will be necessary to appoint a member of legal background in each commission. Apart from this, there will also be a provision for strengthening the Electricity Appellate Tribunal (APTEL) and penalty for non-fulfillment of Renewable Purchase Commitment (RPO).
Approval of Rs 3.03 lakh crore scheme for power distribution companies
The Cabinet Committee on Economic Affairs (CCEA) has approved a five-year reform-based scheme for power distribution companies (discoms) of Rs 3.03 lakh crore. In the general budget of the current financial year, the government had announced a power distribution scheme linked to reform based results.
The scheme was announced by Finance Minister Nirmala Sitharaman as part of a stimulus package to boost the economy after the second wave of the COVID-19 pandemic. Under the Reforms Outcome Linked Power Distribution Scheme, financial assistance will be provided to discoms for setting up infrastructure, system upgradation, capacity building and process improvement.
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