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Electricity Law

The energy sector in India has seen a transformational change with progressive Policy- level changes and effective implementation of directives. These changes promise enormous opportunities for various stakeholders and market players. The Electricity Act, 2003, consolidated the laws relating to the generation, transmission, distribution, trade and use of electricity. This Act repealed all earlier electricity laws except the Indian Electricity Rules, 1956.  The Act of 2003 saw the constitution of the CEA, ERCs and APTEL. The Policy with regard to the country charging amongst the lowest fares in the world is determined taking into consideration factors like improving the operations and management of the regional transmission systems through Indian Electricity Grid Code (IEGC), Availability Based Tariff (ABT), etc, formulating an efficient tariff setting mechanism, which ensures speedy and time bound disposal of tariff petitions, promoting competition, economy and efficiency in the pricing of bulk power and transmission services and ensures least cost investments, facilitating technological and institutional changes required for the development of competitive markets in bulk power and transmission services.

CHALLENGES

  • Legislative and regulatory barriers based upon environmental and sustainability concerns constrain, even prevent, the siting, construction and operation of new grid facilities.
  • Safety and security
  • Privatization proposals
  • Changing technologies
  • Lack of affirmative judgements by the Apex court on consumer related issues.
  • The Quasi-judicial Framework under the Electricity Act, 2003 comprises of officials of the distribution licensees, who may not be judicially trained, resulting in non-speaking orders.

OBSERVATIONS

While almost 61% of the power generated is from coal, India is looking to alter the generation mix in the years to come, focusing on a low-carbon growth strategy, although coal production continues to be on the agenda of policymakers. India is dependent to a great extent on imports. It features among the top five largest importers of oil and is also the sixth largest importer of petroleum products and liquefied natural gas (LNG) worldwide. In such a scenario currently there are thousands of cases filed from both sides, waiting for a verdict for years and more pour in on daily basis. There is a need to revamp some policies, make strict laws and speedy decisions in the court. Although the amendments bring about measures aimed at infusing healthy competition in the power supply and provide a boost to renewable energy-based generation, some are still wary of the legal ramifications of separating carriage from content and its impact on the average consumer.

The case of electricity usage in shopping mall

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