The long-awaited reform in the Power sector will be introduced in the Monsoon session of 2021 by R.K. Singh, Minister of Power and Minister of New and Renewable Energy. The progressive bill will certainly burst the balloon of Arvind Kejriwal and AAP for, their primary vote-catching scam of providing free electricity will be a thing of the past. Hence, you can understand why AAP and Congress along with TMC, RJD and SS are desperately trying to disturb the Parliament with the non-issue of Pegasus? If HMO decides to sing like a canary on the origin of Pegasus in India, Congress and like-minded allies will have to find a deep hole to crawl into for, they will be publicly shamed. Again!
Let us try and understand how important this Electricity (Amendment) BIll 2021 is to India and its citizens. One of the main concerns in the Power sector since the NDA Government led by Prime Minister Narendra Modi took charge in 2014 was the financial health of the distribution companies (discoms) which are mostly state-owned. Discoms have had a high level of debt and have been in the red for several years. The main reasons for these extended losses was underpricing of tariff, theft, billing issues and other technical and commercial losses. The increased financial stress on generation companies has also increased due to the aforementioned reasons.
The bill proposes:
- To delicense power distribution to reduce entry barriers for private players creating competition in the sector. This will enable consumers to choose from multiple service providers.
- At present, consumers have no option but to get electricity supply from one service provider available in the area of operation which may be either state-run or private. The bill proposes that the existing distribution company may continue but multiple distribution companies shall be allowed in the same area of supply.
- Unification of regional grids under the umbrella of ‘One Nation, One Grid’. This will improve supervision over the national grid and ensure its security and reliability. This would mean that power can be distributed to any part of the country without difficulty.
- As this largely favours consumers, rights and duties of consumers are highlighted.
- No electricity shall be scheduled or dispatched under a contract unless adequate security of payment has been provided. This will address issues of delays in payment to power generation companies by power distribution companies.
The crux of the bill is that Government subsidy will not be accounted for while determining the tariff and such subsidy will be provided directly to the consumers. The bill requires the SERCs to adhere to the National Electricity Tariff Policy for determining cross-subsidy. The bill proposes that the tariff for the retail sale of electricity must reflect the cost of supply. This will put a dent in his scheme to provide amenities and benefits of schemes to the 8 lakh plus Rohingyas he has housed for his various “peaceful” agitations (anti-CAA, farmers protest and other upcoming ones) paid for by Indian taxpayers.
There are many other excellent amendments that will definitely help the Power sector to become green. However, this bill will give sleepless nights to Arvind Kejriwal and AAP who have dreams of ruling Punjab, Uttarakhand and Uttar Pradesh through their well-thought-out scam of providing free electricity.
With more players in the mix, consumers will be able to choose who they wish to buy power from which means that AAP will go out of business and with that, so will their dreams of spreading their Venezuelan-like bubbles across India.