New Delhi, Jul 31 (KNN) Based on the experience gained over the last ten years and to accommodate the recent developments in the areas of grid stability and security, development of market and progress in technology, the Ministry has drafted amendments to the Electricity Act, 2003, Minister of state for Power, Coal and New and Renewable Energy, Piyush Goyal said.

The amendments are based on the recommendations of a committee headed by Chairman, Central Electricity Authority (CEA).

“These amendments are expected to bring about further improvements in grid security, efficiency in distribution sector through separation of carriage and content, rationalization of tariff, dynamic and responsible regulatory framework with the overall objective of sustainable growth of the sector aimed at consumer benefits,” Goyal informed Parliament today.

The proposed draft amendments were circulated on October 17, 2013 for seeking comments and were also uploaded on the website of the Ministry of Power. 

The Minister further stated that Distribution of electricity is a licensed activity. As per the provisions of Section 14 of the Electricity Act, 2003, the State Electricity Regulatory Commissions (SERCs) have the power to grant license to any person to distribute electricity. Hence, distribution companies in the States are answerable to respective SERCs for licence related activities.

The Union Government has no direct role in functioning of power distribution companies. No specific details regarding the audit of various electricity companies conducted in the country is presently available with the Government, the Minister added. (KNN/SD)