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Thursday, 19 September 2024 2.24 AM IST

Imagine buying electricity from multiple electricity providers! Monopoly of electricity boards to end soon

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In our country, electricity is generally distributed in the public sector. As development and progress increases, the cost of electricity will increase in any country. As demand increases and supply decreases, electricity rates naturally increase. Politics in the power sector can cost boards and lead to frequent hikes in power rates. Current electricity rates in big cities are more than the middle class can afford.

Politics in electricity

Aam Aadmi Party used electricity as its biggest trump card. When the party came to power, it fulfilled the election promise of halving the electricity bill of a common man in Delhi. They repeated this in Punjab too. The main reason why people rate Aam Aadmi Party differently from other political parties is their move to reduce electricity rates.

Electricity Amendment Bill

Power Minister RK Singh introduced the Electricity Amendment Bill in the Lok Sabha two days ago, initiating privatization in the power supply sector. Due to the strong opposition of the opposition, the bill has now been left to the standing committee. By amending Section 42 of the Electricity Act, private companies will be allowed open access to the distribution network. Private companies that get licenses can also supply electricity. The Centre intends to grant licenses to multiple power supply companies in the same area and provide consumers with a choice of power suppliers like telephone, mobile and internet services.

This means electricity consumers can choose the company of their choice from multiple electricity providers, like choosing telecom providers like Jio, Airtel and Vodafone. As Jio mobile has captured the market, big companies will offer huge offers in the initial phases. With the coming of the Electricity Amendment Act, the current monopoly of state electricity boards in the distribution sector will end. People will not want the public sector if the prices are increased frequently.

People are no longer in the mood to tolerate public sector's inefficiency and corruption as they used to be. People now have the wisdom to accept whoever provides better service at a lower cost, whether it is public sector, private sector or foreigner. When people's attitudes change, old rules and regulations need to be changed. This is why the Centre has brought the new Electricity Amendment Bill, which has been passed by the Lok Sabha.

Private companies cannot raise prices as much as they want. The upper limit and base limit of rates are fixed by the state regulatory authorities. So price differences can be implemented only in the meantime. In this way, the customer will have the opportunity to choose who provides the most efficient electricity at the lowest cost.

Opposition's arguments

The opposition alleges that facilities built with public money are being given to private companies to make profit. There is no point in this. Airports in the country are built by the government. Private companies are allowed to land there. A fee is charged for the same. The ultimate benefit of this is the passenger. Likewise, Union Energy Minister R.K. Singh clarified that giving private companies the use of electricity distribution network is not free but they will be charged for it.

The central government has also assured that the Electricity Amendment Bill will not eliminate existing subsidies or lead to rate hikes.

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TAGS: ELECTRICITY, PRIVATE COMPANIES, KSEB, ELECTRICITY AMENDMENT BILL
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