The Central government has passed an Electricity Amendment Bill 2021. Which makes manipulation in Electricity Amendment bill 2003. The state’s power distribution companies (DISCOMs) will be affected by the amendment to the Electricity Act, which was introduced by the central government in 2003. This bill seems to pave the way for the revocation of the licenses of the power supply division.

The bill would also allow new private companies to pull customers who use more electricity in commercial areas. Thus, private companies will have the right to devise methods aimed at a profit without social thinking. In addition, consumers of the state’s public sector electricity, the economically backward, and the rural areas will be the only ones to receive the subsidy.

By amending sections 26, 28 and 32 of the Electricity Amendment Act, various powers are vested in the National Power Supply Distribution Center. It may also indirectly control the SLTC hub of the State Electricity Board, power distribution companies or the state government’s electricity-related activities.



The main features of the law are as follows:

An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity by taking the following measures:

  • Supply of electricity to all the consumers.
  • Protecting consumers’ Interests.
  • Rationalization of electric tariffs.
  • Transparency in policies regarding subsidiaries.
  • Promotion of efficient & environmentally policies constituted by Central Electricity Authority
    (CEA), Regulatory commissions & establishment of Appellate tribunals.
  • The central Government to prepare a National Electricity Policy in consultation with state governments·
  • Following are the features under Electricity Act-2003 for Electricity Bill-2003.
  • Trust to complete the rural electrification and provide for management of rural distribution by
  • panchayats, cooperative societies, non-government organizations, franchisees, etc.
  • Provision for license-free generation & distribution in the rural areas.·Generation, being delicensed and captive generation being freely permitted.
  • Hydro projects need clearance from the central electricity authority.
  • Transmission Utility at the central as well as state level, to be a government company with responsibility for planned and coordinated development of transmission network.
  • Provision for the private licensee in transmission & entry in distribution through an independent network.
  • Open access in transmission from the outset.
  • Open accesses in distribution to be introduced in phases with a surcharge for the current level of cross-subsidy to be gradually phased out along with cross-subsidies and obligation to supply.
  • SERs to frame regulations within one-year regarding phasing of open access.
  • Distribution licensees would be free to undertake generation and generating companies would be free to take up distribution licensees.
  • The State Electricity Regulatory Commission is a mandatory requirement.
  • Provision for payment of subsidy through budget·
  • Trading, a distinct activity is being recognized with the safeguard of the Regulatory commissions being authorized to fix ceilings on trading margins, if necessary.
  • Provision for reorganization or continuance of SEBs·
  • Metering of all electricity supplied made mandatory·
  • An Appellate Tribunal to hear appeals against the decision of the CERC and SERPs.
  • Provisions relating to the theft of electricity made more string.




Hope you found it useful,