1 An Act to amend the law relating to the supply and use of electrical energy. inserted by section 5 of the Indian Electricity (Amendment) Act, (Act No. Electricity Act, (2) It extends to the whole of India except the State of Jammu and Kashmir. (3). It shall come into force on such date as the. Main Features of Electricity Act, Electricity (Amendment) Act, for Encouraging Competition in Development of Transmission Projects- amendment dated May 2, The above documents are available in PDF format. Please.

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PDF | The Electricity Act was a landmark Act which promised to remove the maladies which afflict reforming the power sector of India (Chatterjee, ). The Indian Electricity Rules - Free download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online for free. THE INDIAN ELECTRICITY RULES, CONTENTS. CHAPTER I. PRELIMINARY. 1. Short title and commencement. 2. Definitions. 3. Authorisation.

Ekambaram Anandan. Vivek Kumar.

The Electricity Act, 2003

Shaji Mullookkaaran. Mallikarjun Reddy. Anand Agrawal. Yogesh Kumar. Inayat Hathiari. Santosh Kumar. Shanmuga Baskar. Abhishek Kumar Sinha. Popular in Electromagnetism. Selma Cunha.

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This necessitates the presence of an efficient Independent System Operator ISO ensure proper compliance of the supplied power with grid codes. There is a stray possibility that independent power producers may pump in power into the grid even when the system does not desire it. In order to prevent such situations, definite protocols for power transmission and dispatch scheduling need to be conveyed uniformly to each power generator.

Since , the government has offered attractive returns and incentives in order to promote private investment in power generation.

Despite series of reform measures, the power generation continues to be heavily dominated by public sector utilities Even today, more than two decades after liberalization process began, private sector participation in generation has failed to pick up in the intended manner.

Majority of the private generation capacity is in the form of captive power generation plants, which are owned by large consumers of electricity for their own consumption. The primary reason for this trend could be, that the multi- downloader objective of Electricity Act has still not been realized. In order to overcome this bottleneck, the central government should make provision of a separate fund to compensate a private generator for loss or delay in revenue realization from a SEB.

However, there is no time line for implementation of some key measures of the reforms, such as phasing out cross subsidies, disintegration of state utility boards, and introduction of wholesale and retail competition. Alternatively, industries and other large consumers of electricity pay more than the marginal cost of electricity in order to cross-subsidize the low tariffs for agricultural and rural consumers.

The issue of subsidies to agricultural consumers, and to some extent to residential consumers as well, is politically sensitive.

These demographics represent vote banks for any power aspirant, and removal of subsidies will require considerable political will. The tariffs for industries in India are higher than most developed nations, precisely because of the cross-subsidy quotient.

Such practices have led the industries to drop out of the state power generation and distribution network and install captive power plants for their electricity needs. However, increased prevalence of captive power plants can put further pressure on the constrained fossil fuel resources.

The experience from the power sector reforms over the past two decades has shown that consumers are not against paying higher prices for electricity if there is significant improvement in reliability.

The prices of electricity have risen consistently by higher than the annual inflation rate since , yet number of consumers has risen consistently, signifying the importance of quality and reliability of power supply. Metering and Energy Audits Distribution sector provides the last mile connectivity to the consumer, yet it is the weakest link in the country power sector value chain.

Proper metering of consumers will help to identify the exact nature and quantum of power loss through non payments or through leakages in the system. Over the years, there has been a practice among DISCOMS to attribute loss of revenue to agriculture, thereby masking the true reason for the power and revenue loss. Agricultural and rural feeders should be separated, in order to minimize the losses accounting from wasteful consumption of subsidized electricity.

Separation of agricultural and rural feeders will also give a more accurate picture of losses, and will help in proper scheduling so as to make minimum 21 Garg, S.

It will also enable to make more reliable estimates of the volume of subsidy payments to states which have substantial agricultural power consumption. Much of the commercial losses are due to non-payment by many residential consumers.

Smart meters also help in improving consumer service by relaying real time power performance data to the DISCOM, and are an essential component for many ancillary services as well.

Time of Use ToU Tariff ToU tariff structure sets prices in advance that vary at small intervals of time less than a day. ToU tariffs are often imposed by electricity companies on the consumers to improve economic efficiency of power supply.

Typically, the base load power supply at off-peak hours has lower tariff than peak power tariffs. Such difference in tariff structure can motivate consumers to shift power consumption to off-peak hours, thereby smoothening the power supply curve and ensuring a more efficient utilization of the base load power generation capacity.

ToU structure has not been introduced yet in India, though it can be initiated in urban centers, where high population density puts extra pressure on the generation company through high peak power demands, occasionally leading to blackouts.

Environmental and Welfare Perspective It is also very important to observe that impact of power sector reform in India, or any developing country for that matter, would be different from those in developed countries. There is enormous heterogeneity among the consumers in developing countries, and it is virtually impossible to impose a uniform tariff structure across the consumer base even within a jurisdiction without sacrificing the welfare objectives of the reforms.

It may not be possible or practical to embark on a strategy to phase out subsidies in power at the earliest, which needs to be done gradually over a longer period of time through repeated assessment of economic and income indicators.

Hence, there is need for progressive government intervention22 to shift the reform process towards a more responsible development path that takes into account social and environmental issues endemic to India.

The Act delicenses power generation completely except for all nuclear and hydro-power projects over a certain size. As per the Act, 10 per cent of the power supplied by suppliers and distributors to the consumers has to be generated using renewable and non-conventional sources of energy so that the energy is reliable. Electricity generation has been made a non-licensed activity and the techno-economic clearance from the Central Electricity Authority CEA has been done away with for any power plant, except for hydro-electric power stations above a certain amount of capital investment.

This has been provided in section 7 and 8 of the Electricity Act The generators can sell electricity to any licensees or where allowed by the state regulatory commissions, to consumers directly. The Act licenses distribution in rural areas and brings in a licensing regime for distribution in urban areas. However, as per the Act, only 16 states in India have notified what constitutes as rural areas and therefore the rural distribution is yet to be freed up in nearly one third of the country.

Preparation of technical standards for construction of electrical plants, electric lines and connectivity to the grid is the responsibility of CEA as per section 73 b of the Electricity Act, This implies that generating stations need not follow compulsory the CEA technical standards specified for construction of electrical plants and electric lines.

Left parties opposed the clauses related to competition in electricity market such as unbundling of Electricity Boards and open access and also had strong objection regarding elimination of cross subsidies. UPA government , in its first tenure agreed for some of the amendments and according clause regarding cross subsidies are amended.

In its second tenure, UPA government published a draft amendment of The Electricity Act with the main intension of separation of retail sale of electricity from distribution business. Several amendments were made after in the Act. The amendments proposed during is to make major changes. The important provision is to introduce electricity supply companies who will not own electric lines.

The Government says it would attract competition and therefore will cause reduction in price. But those oppose these amendments say that in Indian situation competition can not bring down the cost.

Some electricity finance experts are of the opinion that it will weaken the public sector discoms and can damage power sector industry in the country. Section 25 of the electricity act, authorises the central government to demarcate the country into regions necessary for the efficient, economical and integrated transmission and supply of electricity, and in particular to facilitate voluntary interconnections and co-ordination of facilities for the inter-State, regional and interregional generation and transmission of electricity.

Electricity is listed in the concurrent list entry 38 of list III.

The traditional and unscientific demarcation of the country into five regions north, south, east, west and north east regions without giving any valid justification and applying one set of rules for intra region and different set of rules for inter regions in sharing electricity transmission system and transmission losses, etc.Csaba Langer.

However, as per the Act, only 16 states in India have notified what constitutes as rural areas and therefore the rural distribution is yet to be freed up in nearly one third of the country.

Acts and Rules

A state distribution company can procure power Electricity Act : through a Memorandum of Understanding MoU route that is, a negotiated PPA under section 62 of the Electricity Act ; or by seeking competitive bids from generation companies Section 63, Electricity Act. The new act consolidates the position for existing laws and aims to provide for measures conducive to the development of electricity industry in the country.

The Indian Electricity Rules, are framed under Section 37 of the Indian Electricity Act, to regulate the supply, transmission, generation, and use of electricity.

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