Govt likely to move Electricity Bill in Monsoon Session

The government is likely to move the Electricity (Amendment) Bill, which seeks to segregate the power distribution network from electricity supply business, for passage in the Monsoon Session of Parliament, beginning next week.
The bill envisages to provide customers the option to choose their electricity service providers and is expected to bring more competition and improve quality of services in the power distribution segment.
"Government is likely to bring Electricity Act (Amendment) Bill in the coming session of Parliament," a source said.
The Monsoon Session of Parliament will commence from July 21 and conclude on August 13.
The bill, which also seeks to introduce multiple supply licencees in the market, was introduced in Parliament in December last year.

Thereafter, it was sent to Parliamentary Standing Committee on Energy for perusal. The panel had submitted its report in May.

Now, the bill would be sent to Union Cabinet for approval and then it will be moved in Parliament for consideration and passage.
"All consultations are over and the bill is back from a Parliament Committee. Power Ministry will send it to Cabinet. It will give consumers 'power to choose, power to change' their distributor. It will help better service," the source said.
State-run power utility NTPC, which is mainly into power generation, is likely to get into distribution, the source added.

The government is giving a big push to the production of clean power in the country, with plans to increase supply of renewable energy supply by five times by 2022 which is close to 32,000 MW currently, he said.
The Parliamentary Standing Committee on Energy had expressed reservations on proposed development of futures market for trading of power in the bill, saying it will result into artificial shortage of electricity which would push prices upwards.
The panel headed by BJP MP Kirit Somaiya had explained, "... It won't be feasible to have forward and future contracts/market at this juncture. More than 95-98 per cent distribution of power is with discoms/PSUs. Where is the question of forward and future trading."

The panel had also said "the intention (of the bill) is to segregate the entire distribution network from the supply business. However, clarity is required as to the level and manner at which it will be put into action.
"The broad and flexible guidelines in this regard are to be framed giving the states due scope to align these guidelines as per their conditions.