Electricity Act Amendment Bill, 2014 Introduced in Lok Sabha

Electricity Act Amendment Bill, 2014 Introduced in Lok Sabha; Changes Aimed at Promoting Competition, Efficiency in Operations and Improvement in Quality of Supply of Electricity

The Electricity (Amendment) Bill, 2014 was introduced today in the Lok Sabha by the Minister of State (I/c) for Power, Coal and New& Renewable Energy Shri. Piyush Goyal. The amendments will usher in much needed further reforms in the power sector. It will also promote competition, efficiency in operations and improvement in quality of supply of electricity in the country resulting in capacity addition and ultimate benefit to the consumers.

Salient features of the proposed amendments

The Electricity Act, 2003 was enacted to amalgamate and modernize the earlier Electricity Laws, namely, the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commissions Act, 1998. The Act was reviewed and amended twice, in the year 2004 and 2007, to give effect to certain changes considered necessary.

Based on the experience gained over the years, it was felt to review the provisions further to bring efficiency and competition in the distribution sector, strengthening grid security and safety, promotion of renewable energy, rationalization of tariff and strengthening and performance oversight of Regulatory Commissions etc.

Certain legislative changes were suggested by the Working Group on power for the formulation of 12th Five Year Plan which were further examined under a Committee constituted under Chairperson, CEA. Based on the recommendations of the said Committee, the proposed amendments were uploaded on the website of Ministry of Power in the month of October, 2013. Thereafter, consultations were held with various stakeholders including those from Central Ministries, State Governments, Generation, Transmission, Distribution utilities, Regulatory Commissions, Private Developers, traders, industry associations, consumer groups, power exchanges and individuals etc., in meetings taken in the Ministry.

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