Electricity (Amendment) Bill 2022 likely to be introduced next week

The government is likely to introduce the much-awaited Electricity (Amendment) Bill 2022, which aims to streamline the payment framework, empower regulators and encourage competition in the sector.

The suggested amendments are to the Electricity Act, 2003 which was enacted to consolidate the laws relating to the generation, transmission, distribution, trading, and use of electricity and generally for taking measures conducive to the development of electricity.

"The amendments to the Act are also necessary in view of the importance of green energy for our environment in the context of global climate change concerns and our international commitments to increase the share of renewable energy. Further, it has become necessary to strengthen the regulatory mechanism, an adjudicatory mechanism in the Act and to bring administrative reforms through improved corporate governance of distribution licensees," the government said.

The Bill proposes that power distribution licensees will be allowed to use the networks of other licensees, which could boost competition and enhance efficiency. The government also hopes to insert a new section in the Act that will enable the management of power purchase and cross-subsidy in case of multiple distribution licensees in the same area of supply. These measures are expected to promote competition in the power distribution sector so that consumers benefit from competitive prices.