Here is the list of changes we can expect once the Bill introduced by the Government last week is passed. The new Electricity Amendment Act Bill 2014 means:
Consumers can now select a company of their own choice. They don’t need to subscribe to a single entity that provides electricity.
Multiple suppliers of electricity will be allowed. One company that distributes electricity will not necessarily be the supplier.
This move is said to "promote competition, efficiency in operations and to improve quality of supply of electricity in India".
Market principles would determine tariff, and the distribution network will be regulated.
The retails sale of electricity will be capped through the regulator. One of the supply licenses is proposed to be a government-controlled company.
Some states have raised concerns on this Bill, questioning how public sector providers will be hit by the entry of multiple players.
Will Solar Power also be on the agenda of the Government?
Additionally, services like solar power need to be looked into. As of now, that’s a big question mark. Caught in debate between private and public sector, important questions are not being asked.
It may be wise to note many villages across rural India suffer from a severe lack of electricity. The image of a boy peering over the nightlamp to study for his exams is etched in our memories.
What's more, many small towns, hill towns and even big cities have really erratic power supply. Do you think introducing multiple players will make a difference?
Do let us know in the comment section.
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