Centre Plans To Allow Consumers To Switch Power Service Cos, Like Telecos

Centre Plans To Allow Consumers To Switch Power Service Cos, Like Telecos

Consumers will be able to change their power suppliers just like telecom services, after proposed amendment to the existing Electricity Act is approved, Union Minister RK Singh said.

The Power Ministry will push Electricity Amendment Bill in forthcoming Budget session, which provides for segregating the distribution network business and the electricity supply business.

“We are bringing a lot of amendment in the Electricity Act. It also provides for separation of carriage and content business. The draft would come to me in another week or so. We will try to push it for passage in Budget session of Parliament,” RK Singh, Minister of State for the Power and New and Renewable Energy Ministry told PTI in an interview.

The separation will pave the way for introducing a new system where consumers will have option to choose from multiple electricity service providers in their areas, similar to that of telecom services.

Elaborating further Singh said, “Once the Act is amended, we would prepare a roadmap in consultation with States to prepare a roadmap to segregate distribution and supply wings of the discoms. After that monopoly will be eliminated in supply wing by giving franchise to more than one players in an electricity supply area“. Read More…

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