How we can increase the availability of power: Kameswara Rao, PwC

Kameswara Rao, leader energy, utilities and mining, PwC India, replies to queries on what the Budget has in store for the power and metals sector

How can we increase the availability of power for both industry and residential consumers?
- NVDS Raju
 
Generation of power was delicensed in 2003, but consumption remains regulated and utilities keep tight control on their consumers. This means consumers’ need does not send investment signal to enhance generation, thus leaving them to suffer persistent or seasonal shortages.
 
To overcome this, open access and retail competition must be implemented more strictly, so that new demand can attract new suppliers. Alternately, the electricity regulators can specify reliability and supply norms, and more strictly monitor them, which they fail to do today. We can take either route to improve availability of power, and even under existing legislation, sufficient provisions exist for governments and regulators to take these steps.