The Draft Electricity (Amendment) Bill, 2021

Share with Your Friends

The Draft Electricity (Amendment) Bill, 2021

Recently, the government has removed several sections from the draft Electricity (Amendment) Bill, 2021.

The draft bill seeks to amend the Electricity Act, 2003 to address the issues undermining commercial and investment activities in the power sector.

It may be noted that the combined revenue deficit of all the Power Distribution Companies (DISCOMs) had reached Rs 5 lakh crore.

Key provisions included in the draft of the bill

  • De-licensing power distribution system to allow private sector agents to enter into contracts and compete with state-owned power discoms.
  • It empowers the central government to formulate a national renewable energy policy in consultation with the state governments.
  • Provision of a Universal Service Obligation Fund to meet any shortfall in cross-subsidy.
  • The bill has shifted the responsibility of ensuring renewable purchase obligation (RPO) from state commissions to the central government.

However, several states have pointed out concerns about certain provisions of the draft Bill, such as:

  • Entry of private agents can lead to ‘cherry-picking’. Private agents will provide electricity only to commercial and industrial consumers and not to residential and agricultural consumers.
  • Stringent punishment for failure to fulfill RPOs.
  • The Regional Load Despatch Centre and the State Load Dispatch Center need to ensure compliance with the directions of the National Load Despatch Center.
  • Now, the government has decided to remove several clauses of the draft Bill after objections raised by various stakeholders.

Source – PIB

Download Our App

More Current Affairs

Was this article helpful?

Leave a Comment

Click to Join Our Current Affairs WhatsApp Group

Join Our Whatsapp Group For Daily, Weekly, Monthly Current Affairs Compilation & Daily Mains Answer Writing Test & Current Affairs MCQ

In Our Current Affairs WhatsApp Group you will get daily Mains Answer Writing Question PDF and Word File, Daily Current Affairs PDF and So Much More in Free So Join Now

Register For Latest Notification

Register Yourself For Latest Current Affairs

June 2023
« May    

Mains Answer Writing Practice

Recent Current Affairs (English)

Current Affairs (हिन्दी)

Subscribe Our Youtube Channel

Register now

Get Free Counselling Session with mentor

Download App

Get Youth Pathshala App For Free

Hi, there

Welcome to Youth Destination IAS

We have a perfect gift For you:
Open Access to the Youth Destination Library