Electricity Distribution in India An Overview
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Strategy of GOI for ushering Reforms
• Restructuring of the sector by unbundling of State
• Corporatisation of Generation, Transmission and
• Setting up of Regulatory Mechanism
• Competition in various segments
• Liberal regime in underserved rural areas
Provisions in Electricity Act-2003
• Provision for reorganisation of SEBs : unbundling G,T,D
• Generation delicensed
• Expanded role for the Regulatory Commissions
• Provision for private licensees entry in distribution through an
• Open access in distribution
• Distribution licensees would be free to undertake generation and
generating companies would be free to take up distribution
businesses after obtaining license.
• Metering of all electricity supplied made mandatory.
• Provisions relating to theft of electricity made more stringent
• Thrust to complete the rural electrification.
• Provision for license free generation and distribution in the rural
• Provisions for safeguarding consumer interests.
• Ombudsman scheme for consumers grievance redressal.
National Electricity Policy – Vision
• Encourage private sector participation in
distribution for requisite reduction in losses
• Segregation of technical and commercial losses
through energy audits
• IT systems may be implemented by the utilities
on a priority basis by support of APDRP scheme
• Promote HVDS, implementation of SCADA and
data management system
• The States and distribution utilities should ensure
effective implementation of the provisions against
theft of electricity
• Accelerated Power Development & Reform
Program (ARDRP)/IT intervention,
- aimed at bringing about improvement in the urban
distribution sector by funding investment in the
distribution network, and by incentivising the states who
performed well in reducing losses.
- The Govt. of India has restructured APDRP during the
XI Plan with revised terms and conditions as a Central
Sector Scheme. The focus of the program shall be on
actual, demonstrable performance in terms of sustained
loss reduction. Establishment of reliable and automated
systems for sustained collection of accurate base line
- the adoption of Information Technology in the areas of
energy accounting will be essential before taking up the
regular distribution strengthening projects.