Power Ministry floats draft Electricity Act Bill 2020

The supply of quality power at affordable prices is essential for sustained growth of the economy of the country. Ministry of Power issued a draft proposal for amendment of Electricity Act, 2003 in the form of the draft Electricity Act (Amendment) Bill, 2020 for comments/suggestions from Stakeholders on 17th April 2020.

Cost reflective Tariff:

Direct Benefit Transfer: The tariff is determined by Commissions without taking into account the subsidy.

1. Establishment of Electricity Contract Enforcement Authority: High Court is proposed to be set-up with powers of the Civil Court to enforce performance of contracts related to purchase or sale or transmission of power.
2. Payment Security Mechanism for scheduling of electricity – Load Dispatch Centres to oversee the establishment of adequate payment security mechanism before scheduling dispatch of electricity, as per contracts.
3. Appellate Tribunal (APTEL): APTEL to seven apart from the Chairperson so that multiple benches can be set-up to facilitate quick disposal of cases.
4. Multiple Selection Committees: It is proposed to have one Selection Committee for selection of Chairpersons and Members of the Central and State Commissions and uniform qualifications for appointments of Chairperson and Members of Central and State Electricity Regulatory Commissions.
5. Penalties: In order to ensure compliance of the provisions of the Electricity Act and orders of the Commission, section 142 and section 146 of the Electricity Act are proposed to be amended to provide for higher penalties.

1. National Renewable Energy Policy: It is proposed to provide for a policy document for the development and promotion of the generation of electricity from renewable sources of energy.
2. Penalties: It is being further proposed to levy penalties for non-fulfillment of obligation to buy electricity from renewable and/or hydro sources of energy.