ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

R RejikumarSubscribe to R Rejikumar

National Electricity Policy and Plan: A Critical Examination

It is necessary to note that during the past 14 years the ministry of power has produced several policy documents and issued numerous amendments; but it has failed to make any significant improvements in the power sector. The new policy is another example that the ministry is not yet ready to learn from its own mistakes.

Indian Electricity Act 2003

The Electricity Act 2003 makes it mandatory for all SEBs to unbundle into separate generation, transmission and distribution entities so as to make them more efficient than vertically integrated utilities. However, in most countries, vertically integrated utilities continue to remain better financial performers and are better able to meet customer needs. A review of the act calls for understanding trends in utility reforms; one of which is the concept of distributed generation that is gaining widespread acceptance. Instead of the outright selling of equity in distribution companies, management contracts for operations and maintenance, as seen in some developing countries, should be considered. The development of short-term energy markets is also an area that needs to be examined in detail.
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