In order to promote competition, efficiency in operations and improvement in quality of supply of electricity, the Electricity (Amendment) Bill, 2014 (2014 Bill) has been introduced in the Lok Sabha on December 19, 2014. The key amendments to the Electricity Act, 2003 that has been proposed are broadly as under:
(a) Enhancing grid safety and security: The 2014 Bill proposed to introduce specific measures for the maintenance of spinning reserves along with strong and effective deterrence by way of enhanced penalties for violations.
(b) Promotion of renewal energy: Several measures like provision for a separate National Renewable Energy Policy, development of renewable energy industry, Renewable Generation Obligation on coal and lignite based thermal power plants, specific exemptions to renewal energy sources from open access surcharge, separate penal provisions for non-compliance of Renewal Purchase Obligation etc. have been envisaged.
(c) Tariff Rationalization: Under the 2014 Bill, the provisions of tariff policy are proposed to be made mandatory for the determination of tariff. The 2014 Bill provisions for timely filing of tariff petitions by utilities and timely disposal of the same by the Appropriate Commission.
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