The proposed delicensing of the supply of electricity, by allowing multiple distributors to operate in the same area, and ending the monopolies of state-run entities, is a big step towards reforming the power sector. The Cabinet is expected to soon consider the proposal to enable consumers to switch between power suppliers, following which the Bill to amend the Electricity Act will be introduced in Parliament, possibly in the session starting today. What’s important is that the distribution infrastructure of an incumbent discom can now be used by a new entrant to supply power in the area. The draft Bill proposes to curtail the powers of SERCs with regard to cross-subsidies.
