NEW DELHI: The government has dropped four key proposals in the draft bill to amend the Electricity Act of 2003 that aimed for far-reaching reforms to improve transparency, instil accountability and usher in bipartisan regulatory platforms for tariffs and contracts – the last two being responsible for many of the problems afflicting the sector.
The withdrawal of the provisions will be a setback for investors looking for transparency in implementation of contracts instead of wanton violation by state governments due to political expediency. The move will also challenge the measures to improve discom finances through timely and reasonable tariff revisions.
The dropped proposals are: Creation of Electricity Contract Enforcement Authority (ECEA) to adjudicate on contractual disputes, direct benefit transfer of subsidy (which was opposed by many states), a single selection committee for appointment of chairman and members of state and central tariff regulators, and implementation of distribution sub-licensee.
