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Home News Power Sector News Power distribution: Separation in carriage and content not binding on the states

Power distribution: Separation in carriage and content not binding on the states

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Piyush GoyalUnion Power ministry has informed the delegation of National Coordination Committee of Electricity Employees and Engineers (NCCOEEE) that 'separation of carriage and content' in power distribution as per proposed Electricity Bill 2014 shall be enabling provision and not binding on the state government.

The 'separation of carriage and content' in power means that while a distribution company will bring electricity to consumer door, the supply and revenue recovery would be done by a private company.

Chairman of All India Power Engineers Federation, Shailendra Dubey, who was part of delegation, said that the NCCOEEE held hour long discussion with Union power minister, Piyush Goyal and other officials at New Delhi on 21-12-2015 on the various provisions of the said bill.

He said that it has been assured by the government that the proposed electricity amendment act shall be enabling provision and not mandatory on states. Further cherry picking will not be allowed and all power supply companies including private ones shall have universal power supply obligation.

State governments will have option to go with only Government supply companies for power supply and there would be no compulsion of opting for private supply companies. State governments will have to notify their road map in 5 yrs time after enactment of Act for segregation of carriage and content without any time limit for implementation.

Source- TOI


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