The Electricity Amendment Bill 2022 was brought in the Lok Sabha on Monday amid protests from the opposition parties. The bill seeks to create competition in the power distribution (retail) segment, and proposes that a discom can use other power distribution licensee’s network. It also seeks to strengthen payment security mechanisms and give more powers to regulators.
“It has become necessary to strengthen the regulatory and adjudicatory mechanisms in the Act and to bring administrative reforms through improved corporate governance of distribution licensees,” states the bill.
As per the bill, the amendments are necessary in the Electricity Act (2003) for the sake of continuing as well as new challenges of sustainability of the power sector, contract enforcement, payment security mechanism, energy transition and the need to provide choice (of multiple service providers) to consumers.
The bill seeks to amend section 42 of the Act to facilitate non-discriminatory open access to the distribution network of a distribution licensee. Further, it seeks to amend section 14 of the Act to facilitate the use of distribution networks by all licensees under the provisions of nondiscriminatory open access, to enable competition, enhance efficiency of distribution licensees to improve services and ensure sustainability of the power sector.
