The draft amendments to the Electricity Act, 2003 is finally out and it aims to keep at pace with the changing market dynamics, increasing renewable capacity and challenge of providing quality power supply. Business Standard explains the major changes introduced in the 2018 avatar of the torch-bearing Act for the sector and its impact. The draft amendments would need comment from the industry and stakeholders before being placed on the floor of the Parliament. Direct Benefit Transfer of Subsidy: Breaking the cycle of subsidy and losses incurred by the discoms, the Act has introduced DBT in electricity as well. The Act says: if the State Government or Central Government desires the grant of any subsidy to any consumer or class of consumers, such subsidy shall be directly transferred to the beneficiary by direct benefit transfer into the bank account of the beneficiary.” The same will apply if subsidy is given through any government scheme as well. Separation of content & carriage: The long-pending demand to separate the infrastructure builder for power distribution to consumers and the licensee to supply has been introduced in the Act. This would entail more than one electricity supplier in an area and consumer will have options to choose their preferred electricity supplier. Allied to it is introduction of time of the day tariff – power rate as per the energy source, season, time and demand.
