Power Min brings new draft of Electricity Amendment Bill

The Union power ministry has come out with fourth draft of the Electricity (Amendment) Bill since 2014, which seeks to set up an Electricity Contract Enforcement Authority (ECEA) having power of a civil court to settle disputes related to power purchase agreement between discoms and gencos.

The draft provides that the ECEA will have sole authority to adjudicate matters related to specific performance of contracts related to purchase or sale of power, between power generation companies (gencos) and distribution companies (discoms).

The decision of the ECEA can be challenged at the Appellate Tribunal For Electricity (APTEL) and, subsequently, at the Supreme Court.

The ministry has sought the comments of the stakeholders on the Bill with three weeks from April 17.

Commenting on the Bill, All India Power Engineers' Federation (AIPEF) V K Gupta told PTI, "The setting up of ECEA would dilute the power of the state and central regulatory commissions to settle matters related to PPAs (power purchase agreements) between discoms and gencos."
He also said, "AIPEF strongly condemned the timings of the power ministry's move to bring back the Electricity Amendment Bill 2020 when the whole country is fighting against the COVID-19 pandemic."
The AIPEF has demanded to put the bill on hold saying, "While the economy of the whole nation is paralysed and administration is in doldrums, the timing is not suitable for introducing the enactment of amendments to any law under such conditions and thus Electricity Amendment Bill 2020 be put on hold."
At first glance, Gupta said, "The purpose of the Bill seems to be to privatise discoms and ensure payment to private generators. The introduction of distribution sub-licensee and franchisee without separate licenses for them and no schedule or dispatch of electricity without the security of payment clearly points towards the intentions of the power ministry."