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DRAFT ELECTRICITY AMENDMENT ACT 2018 (Provisions and their significance…
DRAFT ELECTRICITY AMENDMENT ACT 2018
amendment to the
Electricity
Act, 2003
- renewable capacities and the emergence of a smart grid
network
bring in
greater structural accountability
into the market -
licensing requirements
extended explicitly to all electricity suppliers
Provisions and their significance
amendment - onus of
supplying 24×7 power
to all consumers squarely on the DISCOM
biennial review
of the DISCOM to ensure that
sufficient PPAs have been signed to meet the customer demand
Failing - revocation of the DISCOM license, with the state government empowered to transfer its assets to another supply company that is incorporated or pre-existent
allow for
more than one distribution licensee
to operate in a single area, end area monopolies
every OA power purchase agreement (PPA), be it long-, medium- or short-term, subject to review - electricity regulatory commission
PPAs cannot be terminated without approval from the said
commission and violation of terms - penalties up to Rs 1 crore.
Ceiling on
cross-subsidisation of tariffs
cross-subsidy component
within an area cannot exceed 20 per cent - phased out in three years
time-of-day tariffs finds mention in the draft
alongside pre-paid electricity billing.
costs borne due to inefficiency of DISCOMs cannot be passed on to the customers
use of
direct benefit transfer
for providing
subsidy to lower income group customers - eliminating
consumers misusing the subsidy
mandatory
spinning reserves
(extra generating capacity) - new or expanding thermal power capacities
Penalties
non-compliance with load dispatch centres
now carries a penalty of Rs 1 crore, up from Rs 1.5 million
power generators accountable - variation in scheduled generation, especially in renewable energy
Open access is to be allowed provided
wheeling charges are paid
, along with the surcharge - cannot exceed 20 per cent of the wheeling charges.
positive move to support renewable energy, rural standalone mini-grid systems are restricted to renewable sources only
Three-level committees
- transmission and supply of electricity
coordination of facilities for inter-State, regional and inter-regional generation and transmission of electricity.
top -
National Power Committee
, established - Centre to facilitate integrated operations of the power system
Centre shall also establish a
Regional Power Committee
third
layer is the
State Power Committee
that will be established by the respective State governments
These committees - set the base for the Centre’s
larger goal
-
national-level discom
that can balance the integration of renewable energy in the national grid
Separation of content & carriage
separate
the infrastructure builder for power distribution to consumers and the licensee to supply has been introduced in the Act =
more than one electricity supplier in an area
,
consumer - options to choose their preferred electricity supplier.
mentioned
Smart Meter(mandatory
) and Prepaid Meters and regulations related to the same
violation of PPA - penalties -
determined by the Appropriate Commission
- fines which may extend to Rupees One crore per day , case of licensees may
also extend to
suspension and cancellation of licence
major relief for power generators - facing brunt of
states
cancelling
PPA
citing high cost or lack of funds.