Study of Introducing Competition in Retail Supply of Electricity Across Developed Countries and its Framework for India
Keywords:
Electricity Act 2003, Electricity Amendment Bill 2014, Distribution, Carriage, Content, Parallel Licensing, Mumbai, International experience on electricity retail competition, Document, Content analysis, PrivatisationAbstract
The Electricity Act 2003 in India brought a competition in generation segment resulting into a wholesale market. With the absence of segregation of wire and supply of Discoms in the existing policy for introducing competition in retail supply, a fair competition environment in distribution of electricity is yet to be flourished. An initiative of Government of India through Electricity (Amendment) Bill, 2014 advocated introduction of separation of wire and content of Discoms. In order to provide more clarity to various States of India for its implementation, Forum of Regulators developed a model rollout plan for introducing competition in retail sale of electricity. This paper evaluates a model rollout plan developed by Forum of Regulators vis-à-vis international experience on introducing competition in retail supply of electricity by method of separating wire from the content of supply in distribution of electricity. Five international experiences, viz. UK, Australia, Philippines, New Zealand and California were chosen for a detailed study of their electricity reform processes with criteria of segregating wire and supply functions of Disoms and having mixed experience of success and failures. Based on various international experiences on key issues of electricity retail supply competition , a framework for India as suggested by Forum of Regulators introducing competition in retail electricity supply have been analysed.
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