Meeting of Consultative Committee for the Ministry of Power Held
Parallel distribution licensing framework discussed to expand consumer choice without duplicating electricity distribution networks
- The proposal intends to give consumers freedom to choose their electricity supplier by allowing supplier competition while keeping distribution networks shared through regulated access.
- The proposal targets duplication of poles, lines, and substations by allowing multiple distribution licensees to use an existing network rather than requiring each licensee to build its own network.
- The proposal states that universal service obligation under the Electricity Act, 2003 continues for all distribution licensees, with regulatory safeguards to prevent selective supply only to profitable consumers.
What happened
The Consultative Committee of the Ministry of Power met under the chairmanship of the Union Minister for Power and Housing & Urban Affairs, Shri Manohar Lal, to deliberate on a proposed framework for parallel distribution licensing. The proposal aims to promote consumer choice, improve service quality, and ensure efficient utilisation of electricity distribution infrastructure.
Background and earlier position
UPSC may frame the issue as balancing competition in electricity supply with a regulated, shared distribution network—using wheeling charges and non-discriminatory access—while ensuring universal service obligation constraints and preventing selective supply to profitable consumers.
