Electricity (Amendment) Bill, 2022 introduced in Lok Sabha; proposes to introduce provision in respect of management of power agreement, cross subsidy, etc.

With a view to amend the Electricity Act, 2003 (“Principal Act”), the Electricity (Amendment) Bill, 2022 (“Bill”) has been introduced in the Lok Sabha, which shall gain effect from the date as the Central Government may appoint by notification in the Official Gazette.

Key Highlights:

The Bill seeks to amend:

• Section 14 of the Act with a view to facilitate the use of distribution networks by all licensees under provisions of non-discriminatory open access with the objective of enabling competition, enhancing efficiency of distribution licensees for improving services to consumers and ensuring sustainability of the power sector;

• Section 42 of the principal Act to facilitate operation of multiple distribution licensee in the same area and to avoid parallel network and optimize usage of the distribution network;

• Introduces provisions to to enable management of power purchase and cross-subsidy in case of multiple distribution licensees in the same area of supply;

• Provisions in the Act to introduce a new provision pertaining to Hydro Electric Generation, to facilitate development of the hydro sector in the Country;

• References to the Companies Act, 1956 are substituted with the Companies Act, 2013;

• In respect of the provision pertaining to Procedure for grant of licence, the Amendment has inserted a new proviso, wherein if the Appropriate Commission fails to grant the licence or reject the application within the specified time, the applicant shall be deemed to have been granted the licence;

• In respect of the provision pertaining to Information with respect to levels of performance, a clause has been introduced wherein every licensee should furnish to the Commission the information wherein the status of compliance of the guidelines issued by the Central Government regarding corporate governance;

• Section 146 of the Act to decriminalize offences by removing imprisonment provisions. The maximum permissible penalty amount for non-compliance of the provisions of the Act and the rules, regulations and orders issued under it, is proposed to be enhanced.

• Section 142 of the Act to introduce a specific provision for penalties for non-compliance of the Renewable Purchase Obligation

A copy of the Bill is linked below for ease of reference.

Source: Lok Sabha