The Electricity Amendment Bill, 2014, was proposed to boost competition in the Indian power space through the restructuring of the distribution and supply businesses. As per the amendment, power distribution is to be separated from the retail portion, i.e. carriage (distribution network) and content (electricity supply business) or C&C are to be separated. The aim was to provide consumers with more suppliers to choose from, as the amendment proposed multiple supply licensees to share space within a distribution area. However, the amendment has not been enacted owing to challenges in its implementation. Recently, in CY 2019, center has again drawn up a draft model plan for states that will allow multiple private franchisees to operate as power suppliers in a distribution area, with state-run distribution utilities becoming just owners of the network. This for sure can help in improving efficiency of discoms by enthusing competition in the sector, which can indeed help discoms to squeeze it’s outstanding overdue amount to gencos.
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Key Highlights
The Andhra Pradesh government approved INR 29.84 billion to distribution companies in the state towards the payment of 25% of their losses, allowing them to clear their power dues
86.29% of the total bonds amounting INR 2,32,163 Crore issued till date, of INR 2,69,056.35 Crore to be issued under UDAY scheme
83% of the feeder segregation target under UDAY achieved till date
Report Insights
L&T won an order in Gujarat to construct a 765kV double circuit transmission line that will help transmit power from renewable energy sources
EESL plans to invest INR 25,000 crore on the smart meter program over next five years starting from Q1, 2020.
Leading private power companies have pledged interest in state-run distribution entities (discoms), which could come their way under a new government policy/UDAY 2.0.
Must Buy For
Government Power Distribution Companies
Private Power Distribution Companies
Power Distribution Franchisee
Transmission Utilities
Power Generation Companies
Renewable Power Developers
Independent Power Producers
Power Research Institutes
Research Firms/Associations
Industry Associations / Technical Consulting Group
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