It is no secret that a healthy and efficient power sector can catalyse India’s post pandemic economic recovery. Universal access to affordable, clean and modern energy is key to the wellbeing of a growing population besides enhancing industrial competitiveness. In this context, the recent amendments proposed by the government to the Electricity Act 2003 can be a game changer, by unleashing the next generation of legislative and regulatory reforms, in tune with the radical transformation the sector has undergone. The power sector today is seeing increased private participation, a thrust on renewables and other structural changes across the value chain, that call for a fresh set of ground rules addressing current pain points. The Electricity Amendments Bill 2021 aims to reinvigorate the sector while focusing on the 4 Cs—customer, competition, compliance and climate. The changes can potentially make the sector more viable, transparent and investor-friendly, besides helping achieve India’s ambitious clean energy targets. It is thus critical that after two previous unsuccessful attempts, these amendments see the light of day.
At present, distribution is the sector’s Achilles heel, with most discoms in abject financial and operational health. In 2021, India recorded AT&C losses of 24.54%, more than double the global average.
