Cabinet may take up Electricity (Amendment) Act soon

The Cabinet may soon take up Ministry of Power's proposal to make necessary changes to the Electricity Act 2003.
Power Minister Piyush Goyal said that the Electricity (Amendment) Act proposals will be out shortly.
"Soon we will come out with the electricity act amendments, hopefully in the next few days," Goyal said here at the Delhi Economic Conclave today.
The proposed changes would include strengthening the penalty provisions, making it more stringent, more enforceable and increasing the penalty many-fold.
Also as part of the proposed amendments, the consumers will soon be able to choose their power supply.
These are aimed at encouraging greater competition in the distribution sector.

The government is working on allowing competition at the last mile delivery so that consumers have a choice of supplier of electricity.

Goyal had earlier said the interests of stakeholders will be protected in the existing power purchase agreements and it would be done in consultation with the power regulator, .
He had also said that the Electricity (Amendment) Act may be introduced during the current Parliament session.
The proposed amendments are aimed at reducing the losses of discoms as well as improving overall electricity supply.
As per the proposal, a new model where a power supplier will not manage the electricity distribution network, is being looked at.

It is on the lines of existing system in the United Kingdom which has separate suppliers and electricity network providers.
At present here, power discoms supply as well as manage network that provides electricity for residential as well as commercial purposes.