The new Act would enable consumers to procure more power through open access system and this would adversely affect the distribution companies. “Failure to procure renewable energy as per the proposed Act will ensure penalties to the extent of ₹0.50- 2 a unit, imposing huge burden on the States,” he said. The State’s control over the electricity regulatory commission would also cease to exist as the Centre would appoint members to the ERCs. The Electricity Contract Enforcement Authority would take care of all the matters pertaining to contracts, power purchase agreements, their implementation, sale and purchase of power and related issues. “The proposed new Act is against the interests of the States, federal spirit and is aimed at usurping the States’ power.

Source: The Hindu September 15, 2020 12:45 UTC