The Union power ministry has come out with fourth draft of the Electricity (Amendment) Bill since 2014, which seeks to set up an Electricity Contract Enforcement Authority (ECEA) having power of a civil court to settle disputes related to power purchase agreement between discoms and gencos.
The draft provides that the ECEA will have sole authority to adjudicate matters related to specific performance of contracts related to purchase or sale of power, between power generation companies (gencos) and distribution companies (discoms).
The decision of the ECEA can be challenged at the Appellate Tribunal For Electricity (APTEL) and, subsequently, at the Supreme Court.
The ministry has sought the comments of the stakeholders on the Bill with three weeks from April 17.
Currently, state electricity regulatory commissions and Central Electricity Regulatory Commission settle state-level and inter-state PPA disputes, respectively.
The ministry had brought first draft in 2014 that was introduced in the Lok Sabha seeking separate carriage and contend electricity distribution business. The Bill could have given option to consumers to change their service providers like they do for their mobile phone service. But, the Bill lapsed after dissolution of the Lok Sabha. The second and third drafts were circulated in 2018 and 2019.
The Bill also provides that the Electricity Act would be applicable to the entire country, including the Union Territories of Jammu and Kashmir and Ladakh.
It also provides that the cross (power) border trade shall cover import or export of electricity from India and any other country. The transaction related to passage of electricity through India would be treated as transit between two other countries.
The Bill also provides that the Electricity Act would be applicable to the entire country, including the Union Territories of Jammu and Kashmir and Ladakh.
It also provides that the cross (power) border trade shall cover import or export of electricity from India and any other country. The transaction related to passage of electricity through India would be treated as transit between two other countries.
The draft law provides for introduction of power distribution sub-licensee or franchisee, which would not require a separate licence from state commission and providing information about them would sufficient.
It also calls for creating National Renewable Energy Policy by the central government in consultation with state governments.
It also provides additional roles to the National Load Desptach Centre that include scheduling and dispatch of power across the country in accordance with contracts.
The bill says that there would no schedule or despatch of electricity unless there is adequate security of payment as per the contract.
The bill enables state as well as central power regulators to specify transmission charges under open access. Earlier, both functions were with the central commission.