Is Centre testing waters with power tariff reforms in Union Territories?

VIJAYAWADA: The power tariff policy reforms announced for Union Territories by Union Finance Minister Nirmala Sitharaman as a part of the Aatmanirbhar Bharat Abhiyan can be seen as a prelude to the reforms being extended to all the States. The direct benefit transfer (DBT) of subsidies announced for UTs by the Centre is a part of the Electricity (amendment) Bill, 2020, which draws opposition from several States.

While the tariff policy reforms, the Centre said, would empower the consumers by making power distribution companies (discoms) accountable, the power utilities of States will have to carefully tread the path if and when the said bill is passed in Parliament or an ordinance is issued by the Centre. The DBT of subsidies has been announced to make the power sector sustainable and also as a part of other reforms to bring down cross subsidies and streamline the financial payments and collections of discoms. One argument is that the Centre is testing waters by implementing it in the discoms in UTs, which are under its ambit.