Following announcement has been made in the Union Budget 2021-22 on 01.02.2021:
“The distribution companies across the country are monopolies, either government or private. There is a need to provide choice to consumers by promoting competition. A framework will be put in place to give consumers alternatives to choose from among more than one Distribution Company.”
Pursuant to the Budget announcements, series of consultations were held with various stakeholders including State Governments, Distribution Companies, Electricity Regulatory Commissions who also protect the interest of the consumers, Consumer groups like Prayas and other power sector utilities. Suggestions from All India Power Engineers Federation have also been received.
The proposed reform was also discussed in the Consultative Committee meeting held on 03.03.2021 wherein Hon’ble Members of Parliament welcomed the proposal.
The envisaged framework to give consumers alternatives to choose from among more than one Distribution Company, requires amendment in the Electricity Act 2003, for which the desired procedures are being followed.
This information was given by Shri R.K. Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha today.