Big reform in the Electricity Distribution Sector

The Govt. is planning to separate carriage (distribution network) from the content (electricity supply business) for which they are planning to table the necessary bill in the winter session of the parliament that begins in the third week of November.

Salient features of this proposal include:

  • Introduction of Multiple Licensees for a single area of competition in retail electricity sector
  • Consumers can choose/switch distribution companies

It will bring revolution to the Indian Power market. The number of investors will get into the Indian Utility Business. This will improve the financial health of the sector and also looked up as important reform for improvement in the quality of electricity supply services. Increase in competitiveness will bring down the electricity tariff, losses and will also provide choices and facilities to 250 million customers.

With the assertiveness of the Govt. to provide 24×7 power to household by schemes like Saubhagya, Deen Dayal Upadhaya Gram Jyoti Yojana, improving financial stress of the DISCOMS by the reform UDAY and transition from power deficit to power surplus country , India is now apt for separation of carriage from the content in the Distribution sector.

Several State Govt. being reluctant to adopt this reform to protect their monopolistic position, Central Govt. is positive to win the confidence of different stakeholders. This will bring disruptive change in the electricity commodity and the best outcome is yet to arrive.

Sharing is caring!