Lok Sabha Question No. 611 (UNSTARRED), answered on 2015-07-23
Subject: Amendment in Electricity Act, 2003
Ministry: POWER
Asked by: SHIVAJI ADHALRAO PATIL, DHARMENDRA YADAV, Shrirang Appa Barne, ANANDRAO  ADSUL

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.611 TO BE ANSWERED ON 23.07.2015

## AMENDMENT IN ELECTRICITY ACT, 2003

611.   SHRI ADHALRAO PATIL SHIVAJIRAO: SHRI DHARMENDRA YADAV: SHRI SHRIRANG APPA BARNE: SHRI ANANDRAO ADSUL:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  proposes  to  amend  the  Electricity  Act,  2003  to separate content and Carriage in distribution sector if so, the details and the salient features including the major objectives of the proposed amendments;
- (b) whether the proposed amendment in the said Act also envisage a concept of multiple licenses to supply electricity through common network and if so, the details thereof including the benefits likely to accrue the consumers;
- (c) whether  the  National  Co-ordination  Committee  of  Electricity  Employees  and Engineers has opposed the proposed amendment in the Act; and
- (d) if so, the details thereof and the reasons therefor including the stand taken by the Government on the issue?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL AND NEW & RENEWABLE ENERGY

( SHRI  PIYUSH GOYAL )

(a)  :        Yes,  Madam.  Government  of  India  has  proposed  amendments  to  the Electricity Act 2003, which, inter-alia, include separation of carriage and content in the distribution sector. The other proposed amendments cover strengthening of grid safety and security, Renewable Generation Obligation (RGO) for new coal and lignite based  thermal  generating  plants,  rationalization  of  tariff  determination  process, performance oversight of Regulatory  Commissions  and strict enforcement of Renewable Purchase Obligations (RPO) etc.

.........2.

(b) : Yes, Madam. The concept of introduction of multiple supply licensees in the  distribution  sector  supplying  electricity  through  common  network  by  way  of separation  of  carriage  and  content  has  been  proposed  to  be  introduced  with  the objective of bringing further competition and efficiency in the distribution sector by giving choice to the consumers.

(c) : The  National Coordination Committee  of  Electricity  Employees  & Engineers by way of its representation has raised some concerns in respect of the proposed  amendments  in  Electricity  Act,  2003,  mostly  relating  to  the  proposal  of separation of carriage and content in the distribution sector.

(d) : The  proposed  amendments  for  separation  of  carriage  and  content provide enabling provisions to bring the regime of competition in distribution sector and  the  actual  transfer  scheme  is  to  be  formulated  and  implemented  by  the respective  State  Governments  looking  into  their  specific  requirements.  Enough flexibility has been provided in the framework to implement the scheme in a phased manner.    Further,  based  on  the  recommendations  of  the  Standing  Committee  on Energy,  many  provisions  have  been  proposed  to  be  amended  to  take  care  of  the concerns raised in the aforesaid representation.

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