The Union Cabinet is more likely to take up for approval the Electricity (Amendment) Bill, 2021 within the subsequent few days, which seeks to allow energy customers to select from a number of service suppliers as within the case of telecom companies, a supply mentioned. “The Electricity (Amendment) Bill, 2021 could come up for consideration and approval before the Union Cabinet in the next few days as the government plans to introduce it in the monsoon session of Parliament which concludes on August 13, 2021,” the supply within the authorities mentioned.
According to a Lok Sabha bulletin issued on July 12, 2021, the federal government has listed this invoice as one of many new 17 payments it plans to introduce within the ongoing parliament session. The bulletin explains that the proposed amendments (within the Electricity Act) entail de-licensing of the distribution enterprise and herald competitors, appointment of member from regulation background in each Commission, strengthening of APTEL (Appellate Tribunal For Electricity), penalty for non compliance of RPO (Renewable Purchase Obligation).
The RPO is a mechanism by which the obligated entities (primarily energy distribution utilities or discoms) are obliged to buy a sure proportion of electrical energy from renewable power sources, as a proportion of the overall consumption of electrical energy.
Earlier final month, Power and Renewable Energy Minister R Okay Singh had mentioned that the invoice seeks to de-license distribution of electrical energy. “We proposed to de-license distribution of electricity just like the generation. The Cabinet note on the bill was circulated and all concerned ministries have approved it. But the law ministry has one or two queries,” Singh had mentioned.
He had exuded confidence that the invoice can be despatched for the Union Cabinet approval quickly, and hopefully it will be launched and pushed for passage within the ongoing session.
The proposal to hunt the Cabinet approval for the Electricity (Amendment) Bill 2021 was circulated in January this yr and the draft regulation was to be pushed for passage within the Budget session.
The invoice seeks to delicense energy distribution to scale back entry boundaries for personal gamers for creating competitors within the section, which might in the end allow customers to select from a number of service suppliers. The invoice additionally prescribes the rights and duties of electrical energy customers.
Last month, the ability minister had additionally mentioned the penalty for non-compliance of RPO can be elevated.
Under the RPO, discoms and different giant customers are required to purchase a sure proportion of renewable power prescribed by their respective regulators. They can even purchase renewable power certificates to satisfy the RPO obligation.
Earlier on many events, the minister had expressed dismay over persistent non-compliance of RPO norms, particularly by state utilities.