Explained: What is the Electricity Amendment Bill 2021

New Delhi, July 23: The Electricity Amendment Bill 2021 is set to be tabled in Parliament. The same enables a power consumer to choose from multiple service providers as in the case of telecom services.

The bill seeks to delicense distribution of electricity.

"We proposed to delicense distribution of electricity just like the generation. The Cabinet note on the bill was circulated and all concerned ministries have approved it. But law ministry has one or two queries," Power Minister of India R K Singh had said.

The proposal to seek the Cabinet approval for the Electricity (Amendment) Bill 2021 was circulated in January this year and the draft law was to be pushed for passage in the Budget session.

The bill seeks to delicense power distribution to reduce entry barriers for private players for creating competition in the segment, which would ultimately enable consumers to choose from multiple service providers. The bill also prescribes the rights and duties of electricity consumers.

Singh said that the penalty for non-compliance of renewable purchase obligation (RPO) would be increased.

Under the RPO, discoms and other large consumers are required to buy certain proportion of renewable energy prescribed by their respective regulators. They can also buy renewable energy certificates to meet the RPO obligation.

Earlier on many occasion, the minister had expressed dismay over persistent non-compliance of RPO norms, especially by state utilities.

Singh also said the Cabinet proposal for the National Green Hydrogen Mission has been circulated with concerned ministries and would soon be sent to Union Cabinet for approval.