New Electricity Bill: End to subsidised power, distribution overhauled

In a bid to initiate reforms in the power sector, the government on Friday made public the draft Electricity Bill, 2020, which seeks to remove subsidised electricity rates, cross-subsidy, complex tariff structure and strengthening regulators, among other things.

The Bill proposes an overhaul of the power distribution sector, which is currently the weak link in the supply chain. It also proposes a franchisee model in private power distribution.

Stakeholders have been asked to give comments on the draft within three weeks.
Regarding subsidised power rates, the provision of power tariff determination has been revised in the Bill and it asks all state electricity regulatory commissions (SERCs) “to determine tariff for retail sale of electricity without any subsidy under section 65 of the Act”.