Powering the energy sector

Synopsis: The Electricity (Amendment) Bill will be a game-changer if we implement its provisions successfully.

Introduction

India’s energy sector is struggling to meet the development needs of people. Also, DISCOMS are fighting with various problems ranging from poor infrastructure, ineffective operations to State level tariff policies. Under this backdrop, the Government of India released Electricity (Amendment) 2020 to bring reforms in this sector.

What are the provisions of Electricity (Amendment) 2020?

More options: The bill aims to provide more options to consumers to choose their service provider or switch their power supplier

What should the government do further?

There is a need to encourage the use of rooftop solar plants. Also, proposing penalties for non-compliance with renewable purchase obligations can help push renewable energy consumption and increase its demand.

Electrical energy should be covered under GST as this will enable companies to avail input credit.

Other solutions can be the installation of smart meters and smart grid which will reduce the AT&C losses.

Source: This post is based on the article “Powering the energy sector” published in The Hindu on 18^h October 2021.