Explained: Electricity amendment bill 2021 —why are states such as WB opposing it?

Source: Indian Express

Relevance: Resolving issues with the discom-sector.

Synopsis: The Central government is facing opposition to the Electricity Amendment Bill 2021 even before it is introduced in Parliament. Examining key concerns being raised.

Context

West Bengal Chief Minister has written to the Prime Minister requesting that the Bill not be brought before Parliament claiming it was “anti-people” and would promote crony capitalism.

Note: For a better understanding of the issue, please read about the amendment bill first.

Concerns

States have expressed various concerns against the bill:

• Ignoring of residential & agri consumers: States have highlighted concerns that allowing the entry of private players could result in private players providing power to only commercial and industrial consumers and not residential and agricultural consumers. Amendment would therefore lead to a concentration of private, profit-focussed utility players in the lucrative urban-industrial segments, while poor and rural consumers would be left to be tended by public sector discoms.
• Higher penalties for failure to meet Renewable energy Purchase Obligations (RPOs)
• The requirement that Regional Load Dispatch Centres and State Load Dispatch Centres follow instructions by the National Load Dispatch Centre.

Terms to know:

• Renewable energy Purchase Obligations (RPO)