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Electricity_Act_2003_Presentation_with_Images.pptx
- 1. Electricity Act 2003 ComprehensiveOverview and Analysis
- 2. Introduction • The ElectricityAct 2003 is an Act of the Parliament of India enacted to consolidate the laws relating to generation, transmission, distribution, trading, and use of electricity.
- 3. Objective of theAct • The main objectives are to promote competition, protect consumer interests, and provide power for all.
- 4. Key Features • 1.Unbundling of State Electricity Boards • 2. Open Access • 3. Electricity Trading • 4. Regulatory Commissions
- 5. Historical Background • Priorto 2003, the Indian electricity sector was governed by various outdated laws. The new act was introduced to modernize and streamline the sector.
- 6. Generation of Electricity •No license is required for generation of electricity, except for hydro projects which require clearance.
- 7. Transmission • Transmission utilityat the central and state levels to be government-owned. Encouragement of private sector participation.
- 8. Distribution • Distribution licenseesneed to ensure reliable and quality power supply. Introduction of multiple licensees.
- 9. Open Access • Openaccess in transmission and distribution systems to promote competition.
- 10. Electricity Trading • Recognizedas a distinct activity with provision for licensing.
- 11. Role of RegulatoryCommissions • Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs) regulate tariffs and ensure fair practices.
- 12. National Electricity Policy •Mandates the central government to formulate the policy in consultation with state governments.
- 13. Rural Electrification • Focuson electrifying rural areas with provisions for subsidies.
- 14. Tariff Policy • Tariffdetermination to be transparent and based on commercial principles.
- 15. Consumer Protection • Rightsto information, grievance redressal, and reliable supply.
- 16. Appellate Tribunal forElectricity (APTEL) • Set up for resolving disputes and hearing appeals against orders of CERC and SERCs.
- 17. Penalty Provisions • Strictpenalties for electricity theft and non- compliance.
- 18. Licensing • Simplified licensingfor distribution and trading.
- 19. Grid Code • Specifiestechnical standards for grid connectivity.
- 20. Renewable Energy • Encouragementfor generation and use of renewable energy sources.
- 21. Power Exchanges • Introductionof power exchanges to facilitate trading.
- 22. Private Sector Participation •Encouragement for private investment in all segments.
- 23. Environmental Considerations • Sustainabledevelopment through clean energy initiatives.
- 24. Reforms in TariffStructure • Rationalization and reduction of cross- subsidies.
- 25. Cross-Subsidy • Gradual reductionwith targeted subsidies.
- 26. Smart Grid andModernization • Promotion of technology and innovation.
- 27. Impact on PowerSector • Greater efficiency, transparency, and consumer satisfaction.
- 28. Challenges • Implementation issues,political resistance, and infrastructure gaps.
- 29. Amendments • Several amendmentsproposed and made to improve the Act.
- 30. Recent Developments • Introductionof new policies and digitalization initiatives.
- 31. Conclusion • Electricity Act2003 is a landmark reform ensuring reliable and affordable electricity to all.
- 32. References • 1. Ministryof Power • 2. Central Electricity Authority • 3. CERC Website • 4. Relevant Books and Journals