Taking steps to prevent cherry picking; states on board for discoms delicensing: Power Secy Alok Kumar


The authorities is taking steps to guarantee degree enjoying subject for state-owned electrical energy distribution firms and dissuade cherry selecting of provide areas by non-public firms when the sector is delicensed, energy secretary Alok Kumar advised ET in his first media interplay.

The authorities is eager to desk the Electricity Act Amendment Bill within the Budget session of Parliament to allow electrical energy connection portability for shoppers.

Power and renewable vitality minister R Okay Singh, Kumar together with senior officers within the ministries and hooked up PSUs held 4 zone-wise conferences with chief secretaries and vitality secretaries of all states on Wednesday.

Kumar stated all states have welcomed the Centre’s proposal to delicense energy distribution sector for giving selection of suppliers to shoppers.

“They had some apprehensions which were mostly clarified in the conference. It was very heartening to see states supporting the proposal in the day long meetings. We had good discussions and no state was left with any unanswered query. We have ensured several provisions for a level-playing field so that there is no cherry picking by any player. We have explained the various proposed safeguards to the states. They have given various suggestions on implementation aspects, which have been noted by the ministry of power,” Kumar stated.

He stated there are a number of proposed measures within the Electricity Act modification to guarantee gamers don’t flock areas containing the well-paying shoppers.

“There is an element of cross subsidy in the tariff. Even if they are taking well-paying consumers, cross subsidy will be there and that will flow to a universal obligation fund and that will levelise the loss,” he stated including an important concern of states is the cross-subsidy loss.

The authorities has additionally proposed that with the consent of incumbent distribution firm, the costly legacy energy buy agreements could have to be shared, he stated.

“We are additionally defining the realm, which might be a minimum of a district, in order that it contains rural in addition to city areas, Kumar stated.

He stated the states have been assured of illustration not solely for finalising the amendments within the laws however later for implementation additionally.

ET had on February 4 reported that any firm, affiliation or physique of people, even non-incorporated, can take up electrical energy distribution in any space after registering itself with the respective electrical energy regulatory fee, if the Centre’s proposal to delicense the distribution sector via legislative modification makes method.

As per the proposal, regulatory commissions should grant registration inside 60 days of submitting an software that meets the eligibility {qualifications} prescribed by the federal government. In case of a couple of distribution firm in an space, the commissions could have to arrange a common service obligation fund. At current, the Electricity Act fixes common service obligation on distribution licensees to present electrical energy to all candidates.

Power minister RK Singh had advised ET in an interview on February 3 that the federal government proposes to delicense electrical energy distribution by amending the 2003 Act. The transfer will induce competitors within the house and empower shoppers to swap networks however is not going to disrupt the prevailing licences, he stated. The Act offers for distribution infrastructure sharing between eligible licensees, he added.

This feed is routinely revealed by way of economictimes.indiatimes.com