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Strides for aberrations: The Electricity (Amendment) Bill, 2021 of India

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  • Shameem P, Mohammed
  • Chittedi, Krishna Reddy

Abstract

The article evaluates the provisions of the newly introduced Electricity (Amendment) Bill, 2021 by the government of India. As a holistic reform package for the electricity sector is coming after a long time, the bill deserves scrutiny regards its merits and other issues raised by various stakeholders. This article is an attempt to assess the bill with a focus on its implications for India's electricity sector. It examines the major features in the bill including the Renewable Purchase Obligation (RPO), the establishment of ECEA, enhanced payment security mechanism, the distribution Sublicense model, and the reforms in electricity pricing and subsidy system in the country. The repercussions of revamps in electricity pricing and subsidy system on farming communities and free electricity programs in many states incited opposition from stakeholders. It is found that the bill attempts to trespass the limits of the quasi-federal system in India, where it affects certain privileges of the state governments. The paper concludes that persisting crisis in the operations of the current regulatory paradigm in the electricity sector deserves a comprehensive renovation, but the abortive approach of the Bill on certain critical issues of the sector needs to be addressed.

Suggested Citation

  • Shameem P, Mohammed & Chittedi, Krishna Reddy, 2022. "Strides for aberrations: The Electricity (Amendment) Bill, 2021 of India," Energy Policy, Elsevier, vol. 165(C).
    • Handle: RePEc:eee:enepol:v:165:y:2022:i:c:s0301421522001823
    DOI: 10.1016/j.enpol.2022.112957
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    References listed on IDEAS

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    Cited by:

    1. Patyal, Vishal Singh & Kumar, Ravi & Lamba, Kuldeep & Maheshwari, Sunil, 2023. "Performance evaluation of Indian electricity distribution companies: An integrated DEA-IRP-TOPSIS approach," Energy Economics, Elsevier, vol. 124(C).

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    More about this item

    Keywords

    Electricity (Amendment) Bill; Electricity sector reform; Subsidies; Tariff; Renewable energy; The electricity sector in India;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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