Power sector (Important changes proposed (Cross-Subsidy Elimination (Why…
Parts of it
-States have overriding powers
-States were given prominence under earlier provisions of the Act
-Power distribution companies aren't in good shape
-Not able to prevent theft
-Discoms finances aren't satisfactory
-Proper metering not ensured
-States giving huge subsidy to agriculture
-As finances aren't good, they are not able to honour power purchase agreements from state DISCOMs
-Cross subsidisation is hurting the economies of users
FEATURES OF THE
ELECTRICITY ACT, 2003
This consolidated the laws relating to
generation, transmission, distribution,trading and use of electricity.
It is generally for taking the measures
conducive to development of electricityindustry, promoting competition,
protecting interests of consumers andsupply of electricity to all the areas.
It is to rationalise electricity tariffs,
promoting efficient, environmentally benign policies
It also looks at constitution of Central
Electricity Authority, Regulatory Commissions, Appellate Tribunals.
It places its bets on
• More competition
• A steering role for the Centre andThrowing a lifeline to generators.
Amendments place the cost of
disruption on the backs of thepoorest, and shifts the potential for
ameliorative measures to the handsof the Centre, rather than the States