(a) whether the Government is aware that the implementation of certain
provisions of the Electricity Act, 2003 would lead to increase in power tariff for
the ordinary consumers;
(b) if so, whether this aspect has been brought to the notice of the Union
Government by the States and by Andhra Pradesh Government in particular in
August, 2003;
(c) if so, the response of the Government thereto; and
(d) the methodology to be adopted by the Government to sort out the
objections?
THE MINISTER OF POWER ( SHRI ANANT GANGARAM GEETE )
(a) to (d) : A Statement is laid on the Table of the House.
STATEMENT
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF STARRED
QUESTION NO. 147 TO BE ANSWERED IN THE LOK SABHA ON 11.12.2003
REGARDING ELECTRICITY ACT, 2003.
(a) : The Electricity Act, 2003 is a progressive legislation that provides
for measures conducive to development of electricity industry, promoting
competition therein, protecting interests of consumers and supply of electricity to
all areas, rationalization of electricity tariff, ensuring transparent polices regarding
subsidies, promotion of efficient and environmentally benign policies etc.
(b) : Governments of Andhra Pradesh, Karnataka, Rajasthan and Punjab
have written to the Government of India highlighting some of the issues connected
with the Electricity Act, 2003. Government of Andhra Pradesh while supporting
the overall objectives of the Electricity Act, 2003 which is a critical legislation to
facilitate development and improved management of the power sector by
promoting measures conducive to promotion of competition and encouraging
private participation, have raised concerns about some of the provisions of the Act.
While supporting open access, concern has been expressed regarding the liberal
definition of captive generation, exemption from surcharge for such captive
generation to take care of cross subsidy, provisions relating to parallel distribution
networks in the area of existing distribution licensee, operational provision
relating to theft and period of disconnection.
(c) & (d) : The Electricity Bill 2001 was introduced in the Lok Sabha in
August, 2001. This was evolved on the basis of a broad consensus after detailed
and in depth discussions with the States and all other stakeholders. The Bill had,
along with other progressive features, the provisions for Captive generation being
freely permitted and having right to non-discriminatory open access through the
grid without payment of surcharge and also for more than one distribution licensee
operating in the same area of supply.
The Bill was referred to the Standing Committee on Energy in the
Lok Sabha, which again undertook detailed consultation with all stakeholders
including State Governments. The Government accepted most of the
recommendations of the Standing Committee. The liberal definition of captive
generation was incorporated in the Act on the basis of the recommendations of the
Standing Committee.