Government May Amend Power Act To Levy Hefty Penalties On Discoms


Government May Amend Power Act To Levy Hefty Penalties On Discoms

The government is working on amendments to the Electricity Act to levy hefty penalties on power distribution companies for load shedding and make provisions for direct subsidy transfers by states to power consumers.

The Union power ministry is aiming to introduce the Electricity Act amendment bill in the budget session of parliament. At present, the Act fixes universal service obligation on distribution licensees to provide electricity to all applicants and the penalty for non-compliance can extend to up to Rs 1,000 per day of default.

“If a distribution licensee fails to supply the electricity within the period specified …., he shall be liable to a penalty which may extend to one thousand rupees for each day of default,” it says. “Nothing contained in Section 43 shall be taken as requiring a distribution licensee to give supply of electricity to any premises if he is prevented from so doing by cyclone, floods, storms or other occurrences beyond his control,” the Act adds. Read More…

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