Power and Renewable Energy Minister, Mr. R K Singh said that to end monopolies from the electricity distribution sector, The government will delicense DISCOM & allowing any company to supply power in any area.

 

DISCOM

 

In 2003 India delicensed power generation. This helped the solar industry to grow and reach the point where is right now. However, at present only DISCOM has the license to distribute the power to the end-user.

The new 10 KW net metering plan some way or another demonstrates that DISCOM is presently getting a charge out of the syndication on the force dispersion. The public authority saw a negative reaction from the solar industry. So, to empower the consumer, the government has taken this step (Delicense DISCOM) towards stopping monopoly from the electricity distribution sector. 

Presently the public authority is hoping to proceed to permit the privately owned businesses to circulate power in any territory. 

The government has proposed a Direct Benefit Transfer of Subsidies to the power customers. The government will notice the effect of different power appropriation organizations. 

To welcome organizations to participate in the competition in power distribution, the Power Ministry will share a draft bill. In this bill they will be proposing amendments in the Electricity Act, explicitly to eliminate the word Distribution License.

Mr. RK Singh gave the statement that “What we have in mind is simply delicensing. The existing distribution companies will remain as they are. They will continue functioning but now they will be open to competition,”

“Any company wants to take up distribution anywhere, they can. As we delicensed generation in 2003, we are delicencing distribution.”

RK Singh further said that “Right now the distribution companies are monopolies though they may be making profits or their losses may below. We want that consumers should have choices. Idea is to open it up by removing restrictions, let people compete in the same areas,”

The Union Budget which was presented on Monday by our Finance Minster gave a framework of this plan. This new framework will enable the consumer to choose among the multiple power distributor companies.

Presently the Power Ministry is searching for remarks from other ministries and states. The beneficial thing is they are not seeing any kind of major opposition to this bill.

 

 

Resource The Economic Times

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