SOLPO Roundtable Discussion on Electricity (Amendment) Bill, 2022

SOLPO research is organising a roundtable discussion on “The Electricity (Amendment) Bill, 2022 and related matters”.

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Roundtable Overview

The Indian power sector faces a number of challenges, including, the poor financial health of distribution licensees as indicated by aggregate technical and commercial (AT&C) losses and burgeoning outstanding dues to power generators, demand-supply mismatch in domestic coal supplies, insufficient transmission infrastructure, grid congestions, issues relating to open access, and increasing non-performing assets. Apart from the above, the integration of renewable energy and new technology, including challenges relating to energy storage must also be resolved.

The Ministry of Power, Government of India introduced the Electricity (Amendment) Bill, 2022 (hereinafter, “the Bill”) in the Lok Sabha on 8^th August, 2022 to further amend the Electricity Act, 2003. The stated objective of the Bill is to bring fresh reforms in the power sector to address challenges relating to contract enforcement, payment security mechanism, energy transition, and the need to provide choice to consumers. While the Bill intends to strengthen the regulatory and adjudicatory mechanism in the Act and to bring administrative reforms through improved corporate governance of distribution licensees, these are features that lean towards centralisation of power at the Union / executive level. The Bill also has to be examined in the context of the changes / amendments that are being introduced through executive actions, such as the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, and the proposed Electricity (Amendment) Rules, 2022.

The roundtable aims to bring about discussion and deliberation on the Electricity (Amendment) Bill, 2022 and related matters amongst policymakers, legislators, industry-leaders, and opinion-formers of the power sector. The roundtable will explore the following:

I. Issues pertaining to Multiple Distribution Licensees

II. Appointment of Chairperson and Members of Commission

III. Power to punish for non-compliance

IV. Ability to refer disputes to arbitration

V. Enhanced role of the National Load Despatch Centre

VI. Grid security issues

VII. Centralising features of the Bill