While publishing the draft Electricity (Amendment) Bill, 2020 including various provisions for reforms in the power sector on its website, The Ministry of Power, Government of India has invited public comments on the same.
Creation of ‘Electricity Contract Enforcement Authority’
Under this the Central Government has proposed for the creation of an ‘Electricity Contract Enforcement Authority’ (ECEA) to resolve the disputes between distribution companies and generation companies. ECEA shall be given sole authority and jurisdiction over adjudication of matters regarding performance of obligations under a contract related to sale, purchase or transmission of electricity. Adding to the above all the contracts between a generating and a distributing company are to be filed with the ECEA within 30 days of conclusion of the contract.
National Renewable Energy Policy
The Central Government has also provided for preparation of a ‘National Renewable Energy Policy’ to promote the use of renewable resources for generation of electricity and has set a minimum percentage of purchase of electricity from renewable and hydro sources of energy for the same. The present framework concerning purchase obligation of renewable energy is under the respective State Electricity Regulatory Commissions.
Cross Border Trade of Electricity
Government has also proposed that prescription of rules and regulations concerning the international trade of electricity will be supervised by the Central Electricity Regulatory Commission.
Strength of Appellate Tribunal for Electricity raised to 7
The present strength of the Appellate Tribunal for Electricity which is 3 members apart from the Chairperson is also proposed to be raised to 7. This will in turn improve the efficiency as it will provide for 4 separate court rooms in the Tribunal instead of the current number of 2 (including that of the Chairperson’s Court).
Selection Committee to make appointments to Appellate Tribunal for Electricity
The Central Government has also proposed a common Selection Committee for making appointments to various authorities like Appellate Tribunal for Electricity, Central Electricity Regulatory Commission, State Electricity Regulatory Commission etc. The Selection Committee shall be chaired by the Chief Justice of India, with members including the Secretary of the Ministry of Power, Chief Secretaries of two State Governments, who will be selected on rotational basis. This takes away the hassle of formation of various selection committees for appointments made from time to time whenever vacancies arise.
Distribution sub-license and Franchise
The creation of a provision for a distribution sub-license is another important reform. It is proposed that the Distribution licensee will be empowered to recognize and authorize a person as “Distribution sublicensee” who will then be able to distribute electricity on its behalf in a particular area within its area of supply, with the permission of the appropriate State Commission.
Comments
All stakeholders are permitted to submit comments on the draft Electricity (Amendment) Bill dated 17.04.2020 within 21 days from the said date. The same can be sent to the following ids-
debranjan.chattopadhyay@nic.in
Read the draft bill here:
