Central Government Seeks Feedback on Electricity (Amendment) Bill, 2020

The Ministry of Power, Central Government released a draft of  Electricity (Amendment) Bill, 2020. Consequently, the Ministry of Power is seeking feedback on its website. For this reason, various provisions will make progress for important amendments in the power sector. Thus, stakeholders are authorized to present feedback on the draft Electricity (Amendment) Bill dated 17.04.2020 within 21 days from the said date.

Objectives/Reasons for Electricity (Amendment) Bill, 2020.

  1. The Central Government has recommended the formation of an ‘Electricity Contract Enforcement Authority‘ (ECEA). To resolve the conflict between distribution companies and generation companies. All the contracts between a generating company and a distributing company are to be led with the ECEA within 30 days of the conclusion of the said contract.
  2. The Central Government has implemented preparation and notification of a ‘National Renewable Energy Policy’ for the betterment of the generation of electricity from renewable sources of energy. It also prescribes a minimum percentage of the purchase of electricity from renewable and hydro sources of energy.
  3. The Central Electricity Regulatory Commission has recommended managing the prescription of rules and regulations regarding the international trade of electricity.
  4. The Appellate Tribunal for Electricity is presently working with a size of 3 members aside from the Chairperson. The size proposed raised to 7 members.
  5. The Central Government has also recommended a common Selection Committee for making appointments to various authorities under the Electricity Act. The Chief Justice of India has recommended judging the  Selection Committee.
  6. The Distribution licensee can recognize and authorize a person as a “Distribution sublicensee” to distribute electricity on its behalf in a particular area within its area of supply, with the permission of the appropriate State Commission.