Electricity Amendment Bill 2021
Electricity Amendment Bill, 2021 is a proposed legislation that seeks to de-licence power distribution to allow private players to compete with the state-owned power distribution companies. This allows the consumers to choose between power distribution companies. It also provides for the strengthening of the Appellate Tribunal for Electricity and penalty for non-compliance of Renewable Purchase Obligation (RPO).
De-licensing of power distribution is being criticised as it may lead to private players providing services only to commercial and industrial consumers and not for residential and agricultural consumers. This may result in public sector discoms facing unfair competition and incuring significant losses.