Government plans to allow consumers to choose power service providers

The Indian government has proposed amendments to the Electricity Act to allow consumers to select and change their power suppliers. The amendments would allow the distribution network business to be separated from the electricity supply business, thereby ending the monopoly on the power supply side. Following the amendments, the government will work with the states to prepare a roadmap for separating the distribution and supply businesses of the discoms. The Ministry of Power (MoP) is planning to introduce these amendments in the forthcoming budget session of Parliament. In addition, the amendments would provide for the strict enforcement of renewable purchase obligations and keep the cross-subsidy below 20 per cent.

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