Electricity distribution companies proposing to enter a distribution area will have to share power from the existing contracts signed by the current licensee, sources said. The incumbent companies will be free to sign new contracts for additional requirements of power without sharing with other distribution firms in the area, they said.
ET had on February 18 reported that the government has proposed steps to ensure level playing field for state-owned electricity distribution companies and dissuade cherry picking of supply areas by private companies when the sector is delicensed.
