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Private players to get more level-playing field: Union power secretary

Government is looking at regulation closely which will help innovation and to ensure that regulations don't encourage monopolies, the official said, adding, "to ensure this we are amending the Electricity Act and we are including a chapter on mark...

PTI|
Nov 11, 2019, 10.18 PM IST
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The secretary further said the ministry is looking at multiple supply franchisees and multiple supply operators.
MUMBAI: The proposed amendments to the Electricity Act of 2003 are intended to free up the power sector so that private sector gets a level-playing field, Union secretary Sanjeev Nandan Sahai said on Monday.

The power ministry has drawn up a draft bill that seeks to allow the states to have multiple private franchisees operating as suppliers in a distribution area, with state-run distribution utilities becoming just owners of the network.

"The changes to the Act will free up the sector so that the private sector has a bigger role to play," Sahai said at an event here while addressing an international symposium to on the energy sector.

To bring in energy efficiency, there is a need for innovation, technology, business processes, financing and regulation. Government is looking at regulation closely which will help innovation and to ensure that regulations don't encourage monopolies, the official said, adding, "to ensure this we are amending the Electricity Act and we are including a chapter on markets, market mechanism and trading of energy".

The secretary further said the ministry is looking at multiple supply franchisees and multiple supply operators.

"We are also looking at systems where wires and distribution network have a natural monopoly. We don't know whether it will remain natural monopoly or not...one would have the distribution network with some monopolies but the supply will be with franchisees," he said.

Addressing the event, NTPC chairman Gurdeep Singh said there is a need for more innovations to bring about efficiency in equipment systems, which in turn will help the common man.

During the event, state-run EESL signed a joint venture agreement with the National Infrastructure and Investment Fund to drive smart meter implementation.

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