Electricity Amendment Bill: Things you should know

Legislative changes are proposed to end distribution monopolies to give consumers a choice and improve the viability of the business. in power suppliers. The Electricity (Amendment) Bill 2022 which has been introduced in the Lok Sabha today, proposes radical changes in the power distribution area. A look at the key provisions of the Bill:

Provisions	Impact	Concerns/Criticism	Govt Assurance
Choice to electricity buyers Bill provides a new supplier can use existing infrastructure to supply power Power regulators must decide in 90 days or application deemed to be approved	Choice of power suppliers to consumers Part of present Electricity Act but regulators squat over applications for licenses	Urban areas would have many licensees, while loss-making areas would be underserved. Indirect Privatisation Universal service obligation only on current discoms Predatory pricing	Consumer-centric and better Services Min area would be defined Max and min tariffs would be set Universal service obligation on all licencees Network sharing allowed for optimum utilization
New responsibilities and checks on regulators Qualifying criteria of members of regulatory bodies tightened Upper age limit raised to 67 years	Power regulators to set electricity tariffs every year	Opposition from states as they are seen losing control over regulatory bodies	State governments do not lose control and continue to appoint the regulators. Ensures independence of regulators. Will improve regulatory mechanism To ensure full five-year term is availed
Power to enforce orders as a decree of the civil court to regulators	Will ensure timely compliance of orders		Ensure compliance of orders
Removal of members of regulatory bodies on wilful violation or gross negligence of rules.	Regulators cannot skip duties including tariff revisions, timely order deliveries,	Pressure on regulators impacts proper and independent functioning.	Ensures compliance of Act.
Promote green energy Ensure discoms buy Centre-mandated portion of power from renewable sources	Meeting India’s green energy commitments	Too much intervention by the Centre Stepping on state prerogative	Centre only sets minimum RPO. State regulators free to set above the minimum threshold.
Extra powers to load despatch centres to ensure timely payments by states to power plants National and state dispatch centres will cut power supplies from plants against which discoms have not maintained bank guarantees	Force discipline among discoms.	Could cause supply disruptions/ grid instability	No threat to grid. Impacts only defaulting discoms.