THIRUVANANTHAPURAM: Kerala opposed the proposed amendment to the Electricity Act by the Central Government in the current Parliament session.

Kerala has a system of providing electricity to large-scale consumers at high rates and using the profits to provide electricity to the poor and farmers at low rates. With the new law, this will not be possible. As a result, household electricity rates will go up sharply.

The draft bill to amend the Electricity Act was sent by the Central Government to the state governments on February 5. The amendment bill contains a number of proposals that will seriously affect the power sector in the country. The central government is taking an approach that challenges the federal system by proposing such a bill. Therefore, the state is of the view that this amendment should be withdrawn. The Central Government will be informed about this.

Recommendations in the Electricity (Amendment) Bill

Any company which meets the criteria set by the Central Government can take over the electricity supply in any state

The decision on registration application for this should be taken by the concerned Regulatory Commission within two months

The company can start supply considering the decision as already taken

The existing power distribution system in the state can be completely used

Power network construction and maintenance is not required of a private company

Even the obligation to ensure the availability of electricity isn't there for companies.

Electricity will be supplied by the private company to large consumers

Power won't be distributed in the agricultural sector and domestic consumers

As a result, KSEB will be confined to non-profit sectors like domestic and agricultural