(a) whether power trading between deficit and surplus regions restricted to Power Trading Corporation is proposed to be opened up for private sector as well;
(b) if so, whether a legislation is being introduced in regard to setting up of private power trading and energy service companies;
(c) if so, the time by which this new legislation is likely to be introduced; and
(d) the main features of the proposed legislation?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )
(a) to (d) : The Ministry of Power has been contemplating a
legislation which would replace the three existing laws viz., the
Indian Electricity Act, 1910, Electricity (Supply) Act, 1948 and
the Electricity Regulatory Commissions Act, 1998. The
legislation under consideration i.e. the Electricity Bill, 2000
envisages inter alia that appropriate Regulatory Commission may
grant any person licence to undertake trading in electricity as
an electricity trader. Thus, power trading between deficit and
surplus regions will not be restricted to Power Trading
Corporation only. The Bill is likely to be introduced shortly.
The National Council of Applied Economic Research (NCAER) was
engaged as a consultant to suggest the legislative changes
required for accelerating the reform process in the power sector
in the country. The NCAER has submitted draft Electricity Bill,
2000 to replace the existing three Electricity Laws (The Indian
Electricity Act, 1910, The Electricity (Supply) Act, 1948 and the
Electricity Regulatory Commissions Act, 1998). The salient
objectives of the proposed legislation are :-
- The draft Bill suggests corporatisation of all the State
Electricity Boards and their restructuring into separate
entities that would provide for accountability based on
profit centres, whether public or private; and setting
up/reinforcing the Regulatory Commissions on the lines of
the Electricity Regulatory Commissions Act, 1998. The Bill
proposes development of wholesale market and trading in
power. It stresses the need for efficiency and competition
with the objective of providing reliable power supply to all
consumers at competitive prices. It also provides for a
clear delineation of roles and responsibilities.
- Detailed discussions have been held with States, State
Electricity Boards, Regulatory Commissions, Experts,
Chambers of Commerce and Private Utilities etc. The draft
Bill is being discussed at various levels before
finalisation.