Question

Discuss the salient features of the electricity act, 2003 and objectives of National electricity Policy in brief.

28 Mar 2018
Answer :
Word Count : 1435

The salient features of the Electricity Act are as follows:

  1. No licence is required for Generation and captive generation has been freely permitted. Hydro projects exceeding the capital cost notified by Central Government however, need concurrence of the Central Electricity Authority.
  2. No license required for generation and distribution in notified rural areas.
  3. Transmission Utility at the Central as well as State level, to be a Government company – with responsibility for planned and coordinated development of transmission network. Provision for private licensees in transmission.
  4. Trading, a distinct activity recognised with the safeguard of the Regulatory Commissions being authorised to fix ceilings on trading margins, if necessary.
  5. Open access in distribution with provision for surcharge for taking care of current level of cross subsidy with the surcharge being gradually phased out.
  6. Distribution licensees would be free to undertake generation and trading.
  7. The State Governments are required to re-organise the SEBs. However, they may continue the SEB as State Transmission Utilities and licensees for such time the State and Central Government agree.
  8. Setting up of the State Electricity Regulatory Commission made mandatory.
  9. An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. x) Metering of all electricity supplied made mandatory.
  10. Provisions relating to theft of electricity made more stringent.
  11. For rural and remote areas stand alone systems for generation and distribution permitted.
  12. Thrust to complete rural electrification and provide for management of rural distribution by panchayats, cooperative societies, non-government organizations, franchises, etc.

 

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