Draft Electricity Act (Amendment) Bill 2020, released 

Part of: GS Prelims and GS-II – Governance; GS-III – Infrastructure (Energy)

In News:

Major amendments proposed in the Electricity Act are as follows:

Direct Benefit Transfer: It is proposed that tariff be determined by Commissions without taking into account the subsidy. Subsidy will be given directly by the government to the consumers.

Establishment of Electricity Contract Enforcement Authority: A Central Enforcement Authority headed by a retired Judge of the High Court is proposed to be set-up with powers of the Civil Court to enforce contracts related to purchase or sale or transmission of power between a generating, distribution or transmission companies.

Establishment of adequate Payment Security Mechanism: It is proposed to empower Load Dispatch Centres to oversee the establishment of adequate payment security mechanism before scheduling dispatch of electricity, as per contracts.

Strengthening of the Appellate Tribunal (APTEL): It proposes to increase the strength of APTEL to 7 members apart from the Chairperson so that multiple benches can be set-up to facilitate quick disposal of cases. 

National Renewable Energy Policy: It is proposed to provide for a policy document for the development of electricity from renewable sources of energy. 

Cross border trade in Electricity: Provisions have been added to facilitate and develop trade in electricity with other countries.

Franchisees and Distribution sub licensees: Distribution Companies may engage Franchisees or Sub-Distribution Licensees to distribute electricity on its behalf in a particular area. 

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