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Electricity is included in the concurrent list of India’s Constitution. As a result, both the Union Parliament and the State Legislatures (State) in India have the power to legislate on topics connected to electricity. However, the Union Parliament’s laws take precedence over the State’s legislation. Electricity generation, transmission, distribution, trade, and usage in India are governed by the Electricity Act of 2003. Electricity generation, except for hydro, is a license-free activity.
Policies
The Electricity Act of 2003 was passed and came into effect on June 15, 2003. The goal is to introduce competition, safeguard the interests of consumers, and offer power to everybody. The Act includes provisions for National Electricity Policy, Rural Electrification, Open Access Transmission, Phased Open Access Distribution, Mandatory SERCs, License-Free Generation and Distribution, Power Trading, Mandatory Metering, and Strict Penalties for Electricity Theft.
It is a comprehensive bill that replaces the Electricity Act of 1910, the Electricity Supply Act of 1948, and the Electricity Regulatory Commission Act of 1998. The Electricity Act of 2003 was revised twice by the Electricity (Amendment) Act of 2003 and the Electricity (Amendment) Act of 2007. The goal is to put the sector on a path of solid commercial growth while also allowing the states and the center to work in harmony and collaboration.
Government Policy Objectives
The Electricity (Consumer Rights) Rules of 2020 are a set of regulations that govern electricity use. The Electricity (Rights of Consumers) Rules 2020 were published on December 31, 2020, by the Ministry of Power (MOP) (Consumer Rights Rules). Consumer Rights Rules aim to make distribution businesses more accountable to their customers.
Consumers’ rights and responsibilities and distribution licensees’ rights and obligations are covered under the Consumer Rights Rules.
Connection, metering, invoicing, and payment are all things that need to be taken care of.
Licensee performance criteria and compensation if such standards are not met.
A prosumer consumes energy from the grid and may also inject power into the grid for a distribution licensee, all from the same source.
The mechanism for resolving complaints.
Power Sector in India
Adani Transmission Limited
Adani Transmission Limited (ATL), headquartered in Ahmedabad, Gujarat, is one of India’s largest power transmission companies, with activities throughout the country.
NTPC Ltd
The headquarters of NTPC is in New Delhi. NTPC Limited is a well-known public sector enterprise in India that produces and distributes energy.
Power Grid Corporation of India Limited (POWERGRID)
Powergrid was founded in 1989 to implement, maintain, and design the nation’s high-voltage producing infrastructure. It is a government-owned corporation that operates the country’s major electric transmission system.
Tata Power Company Ltd
TATA Power, headquartered in Mumbai, is India’s largest private-sector power company, with an operating production capacity of roughly 10,577MW.
National Hydroelectric Power Corporation
National Hydroelectric Power Corporation, or NHPC, was established in 1975. It is a hydroelectric board run by the Ministry of Power, a branch of the Indian government.
Reliance Group
The Reliance Group, India’s largest multinational conglomerate, owns Reliance Power. Reliance Power is an Indian firm that designs, constructs, and runs power facilities worldwide.
Satluj Jal Vidyut Nigam
Satluj Jal Vidyut Nigam, or SJVN for short, was founded in 1988. The company’s services include solar power, electricity transmission, and consultancy.
Adani Green Energy Limited
AGEL (Adani Green Energy Limited) is one of India’s major renewable energy firms. The Adani Group owns the firm, which was founded in 2015. In 2017, the business acquired total ownership of Adani Enterprises’ solar energy portfolio.
Interesting Facts About The Power Sector In India
India now has a total installed capacity of over 170,000 megawatts, up from just 1,362 megawatts when the country gained independence in 1947.
Coal and lignite account for the majority (about 60%), while hydroelectric accounts for slightly under a quarter (approximately 22%).
Some of the major changes proposed by the draught Electricity (Amendment) Bill, 2020 include; establishing the Electricity Contracts Enforcement Authority, appointing distribution sub-franchisees, developing a comprehensive National Renewable Energy Policy, and rationalizing tariffs.
Since independence, India has been plagued with electricity shortages. The peak demand deficiency is greater than 10%, while the total energy shortage is greater than 7%.
The Calcutta Electric Supply Corporation (CESC), established in 1899, was India’s first electricity-producing corporation.
In 1905, Delhi became the world’s first diesel power plant. In the year 1902, Mysore built the first hydroelectric power station. About 60% of India’s electricity industry was privately held when the country gained independence.
Currently, the government owns around 80% of the installed capacity. Private firms own only 12% of the capacity.
Conclusion
Electricity demand has risen dramatically in recent years and is likely to continue to grow. The government continues to expand capacity in the country to fulfill its pledge of providing energy to every home in the country. After China and the United States, India is the world’s largest consumer of primary energy, accounting for around 6% of worldwide consumption.
