In a bid to initiate reforms in the power sector, the government has issued a draft Electricity Bill 2020, which seeks to remove subsidised electricity rates, cross-subsidy, complex tariff structure and strengthening regulators, among other things. The Bill proposes an overhaul of the power discoms. It also proposes a franchisee model in private power distribution. Stakeholders may give their feedback by June 5, 2020.
Regarding subsidised power rates, the provision of power tariff determination has been revised in the Bill and it asks all state electricity regulatory commissions (SERCs) “to determine tariff for retail sale of electricity without any subsidy under section 65 of the Act”.
