Energy deregulation in India should improve service quality


New Delhi New Delhi, India — (METERING.COM) — September 25, 2006 – Major reforms in India’s power sector, largely as a result of the passing of the 2003 Electricity Act and the introduction of the Accelerated Power Development Reforms Programme, should lead to an improvement in the quality of service delivered to consumers.

One of the models envisages the city transmission companies buying power from a state transmission company, with this power in turn being purchased by local distribution companies. They will only be responsible for the supply over a short distance – the ‘last-mile’ connection from the pole in the street to the meter in the home.

There will be several city distribution companies, and consumers will be able to choose their preferred supplier. At this stage the requirements is for at least two players in the market, but this number will hopefully increase in the future.

The government has already agreed to introduce competition for users consuming over 1 MW annually, who are able to purchase energy from companies other than their local distribution company.