The Union Ministry of Power of India has sent the proposed Electricity (Amendment) Bill, 2021, for the inter-ministerial consultation.

The Amendment bill was also sent to the Ministry of Law and Justice for its critical examination and evaluation. After the Union cabinet approves the bill, it will be introduced in the current session of parliament (Lok Sabha and Rajya Sabha) with the aim of passing it in the same session.

The Electricity (Amendment) Bill 2021

  • The new amendments proposed through the Electricity Bill aims to de-license the power distribution and increase competition among them.
  • The Electricity bill is being regarded as the next-generation power sector reforms nationwide.
  • The Electricity amendment bill was proposed in line with what PM Modi said with respect to the electricity suppliers.
  • PM Modi had said that the electricity consumers should be able to choose their supplier like the retail commodity.
  • The new amendments also propose to appoint a member with the legal background to every electricity regulatory commission.
  • It also seeks to strengthen the Appellate Tribunal for Electricity.
  • The electricity regulator will spell out the penalty for not meeting the renewable purchase obligations.
  • These obligations require the power distribution companies to buy fixed amount of renewable energy in order to reduce their reliance on the fossil fuels.
  • The amendment bill might also prescribe the rights and duties of the power consumers in line the government’s plan of ensuring round the clock supply.

Backdrop

The new framework to allow the consumers to choose their electricity suppliers was proposed in the Union budget for FY 2021-2022.

India’s energy Target

The Government of India has set the target to achieve the 450 Giga Watt renewable energy capacity by the end of 2030. The current installed renewable energy capacity of India stands at 89.63 Giga Watt. The energy of 49.59 Giga Watt capacity is currently under execution while energy requirement of 27.41 Giga Watt has been tendered.

Amendment Bill Electricity Act sent for consultation Amendment Bill Electricity Act sent for consultation