Govt to take on board states on changes to Electricity Act

Government will take into consideration views of all stakeholders on the proposal of having multiple electricity suppliers before finalising the relevant changes in the Electricity Act, Power Minister Piyush Goyal said today.
"We are open to discussion with all the states and will come to an agreed formulation," Goyal told reporters here.
Asked about the objections of the states, he said that states have asked for multiple (electricity) suppliers in one year and "we are looking at it."
The Minister, in January, had said the proposed Bill will be introduced post recess in the Budget session of Parliament.
The recess of close to three weeks is the time when parliamentary standing committees study ministry-specific demands for grants.

It is only after consideration of the standing committees that these demands for grants are brought before both the Houses, discussed, and then passed.

The Cabinet, in December, approved various amendments to the existing Electricity Act 2003, aimed at enabling consumers to choose their electricity supplier, among other reforms.
The amendments 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 consumers.
The central government has also said wherever there are existing power purchase agreements, the interests of stakeholders will be protected, which will be done in consultation with the power regulator.

The government plans to allow competition at the last mile or to the end-consumer without raising tariff or compromising on better customer service.