Generation is being delicensed and captive
generation is being freely permitted. Hydro projects would,
however, need approval of the State Government and clearance from
the Central Electricity Authority which would go into the issues
of dam safety and optimal utilisation of water resources.
There would be a Transmission Utility at
the Central as well as state level, which would be a Government
company and have the responsibility of ensuring that the
transmission network is developed in a planned and coordinated
manner to meet the requirements of the sector. The load despatch
function could be kept with the Transmission Utility or separated.
In the case of separation the load despatch function would have to
remain with a State Government organisation / company.
There is provision for private transmission
licensees.
There would be open access in transmission
from the outset with provision for surcharge for taking care of
current level of cross subsidy with the surcharge being gradually
phased out.
Distribution licensees would be free to
undertake generation and generating companies would be free to
take up distribution licensees.
The State Electricity Regulatory
Commissions may permit open access in distribution in phases with
surcharge for-
For rural and remote areas stand alone
systems for generation and distribution would be permitted.
For rural areas decentralised management of
distribution through Panchayats, Users Associations, Cooperatives
or Franchisees would be permitted.
Trading as a distinct activity is being
recognised with the safeguard of the Regulatory Commissions being
authorised to fix ceilings on trading margins, if necessary.
Where there is direct commercial
relationship between a consumer and a generating company or a
trader the price of poI would not be regulated and only the
transmission and wheeling charges with surcharge would be
regulated.
There is provision for a transfer scheme by
which company! companies can be created by the State Governments
from the State Electricity Boards. The State Governments have the
option of continuing with the State Electricity Boards which under
the new scheme of things would be a distribution licensee and the
State Transmission Utility which would also be owning generation
assets. The service conditions of the employees would as a result
of restructuring not be inferior.
An Appellate Tribunal has been created for
disposal of appeals against the decision of the CERC and State
Electricity Regulatory Commissions so that there is speedy
disposal of such matters. The State Electricity Regulatory
Commission is a mandatory requirement.
Provisions relating to theft of electricity
have a revenue focus.
