"The amendments will usher in much needed further reforms in the power sector. It will also promote competition, efficiency in operations and improvement in quality of supply of electricity in the country resulting in capacity addition and ultimate benefit to the consumers," an official statement said.
The concept of multiple supply licencees is proposed by segregating the carriage from content in the distribution sector and determination of tariff based on market principles, while continuing with the carriage (distribution network) as a regulated activity, the statement said.
Aiming to protect consumer interest, the Bill proposes to cap the tariff for retail sale of electricity through the Regulator and one of the supply licensees is proposed to be a government controlled company.
Further, the existing distribution licencees are proposed to continue till the expiry of their term as specified in their licence.
The Bill will also rationalise the tariff structure for the viability of the distribution sector and recovery of revenue requirement of licensees without any gap.
It aims at giving powers to the commissions for initiating suo-motu proceedings for determination of tariff in case the utility or the generating companies do not file their petitions in time.
Further, suitable amendments are also proposed for improving the accountability and transparency in the working of Appropriate Commissions without affecting their functional autonomy.