Proposed Amendments in the Electricity Act May Not Be Good Enough to Lift the Sector

Abstract

Though the amendments proposed in the Electricity Act 2003 seem to be far-reaching, they may just not be enough to save the power sector. Ten years of implementation of the Electricity Act, 2003 has not shown any evident cure to the maladies bothering the sector. The symptoms are loud and clear for everyone. The losses of distribution utilities are reaching new peaks and the generation sector is threatened by the non-availability of fuel (read coal and gas) and mounting receivables. The AT&C loss is still abnormally high. The subsidy burden of state governments has been increasing manifold. The Central government is forced to announce debt relief packages to avert the collapse of the entire power sector.