Electricity Act may be amended to ensure discoms honour power pacts
New Delhi:The government is planning to introduce a bill to amend the Electricity Act to prevent states from reneging on power pacts, particularly renewable energy contracts, and distribution companies from defaulting on bills.
It wants to ensure that renewable energy tariffs are not changed after execution of contracts, and electricity regulatory commissions have more teeth to enforce power purchase agreements between projects and distribution companies (discom), a senior government official said.
The proposal comes after the new governments in Andhra Pradesh and Maharashtra refused to honour power purchase agreements, leaving investors jittery.
