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OCT 17 2013

MoP: Proposed changed to Electricity Act 2003

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 17th OCT 2013

The  Ministry  of  Power  (MOP)  recently  made  public a  document  that proposes various changes to the Electricity Act, 2003 (EA). The below article provides a quick summary of the proposed changes:
Efforts for development of forward markets have been emphasized
The State Commission has been made responsible to specify a road- map for time bound reduction of cross-subsidies
The current role of the Distribution Licensee has been broken up into system business (Distribution) and supply (supply licensee)
In  the  new  system,  the  Distribution  Licensee  will  be responsible  for   “operate  and   maintain  a   distribution system to enable supply of electricity”
The  role  of  supplying  electricity  will  be  that  of  a  the
“supply licensee”
This segregation of system operation and supply is a major step, and down the road will allow multiple licensees to operate in a single area.
The state government will devise a scheme to effect such a segregation
The supply licensee will have to take “Universal Service
Obligation”. The proposed draft requires the licensee to be
“supplier of last resort” and also that they will not resort
to load shedding or power cuts.
Proceedings before a Commission will be disposed of within 120 days. In the event of delay, the Commission will record the reason for such a delay
Penalty under section 142 has been increased from Rs 1 lakh to Rs
50  lakh.  Additional  penalty  for  each  continuing  day  of  default
increased from Rs 6,000/ day to Rs 50,000/ day
Definition of Renewable Energy has been introduced:
“Renewable energy sources” means renewable sources such  as small hydro, wind, solar including its integration with combined cycle, biomass, bio fuel co-generation, urban or municipal waste and other such sources as approved by the Central Government in consultation with MNRE from time to time prescribed.”


Renewable Energy Wind Electricity Act Ministry of New and Renewable Energy Energy Ministry of Power Power Electricity Solar

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