Threat of mounting financial losses in Electricity Distribution on Indian economy and way forward

摘要

The Electricity Act, 2003 envisaged a new era in the power sector with unshackling of the sector from government controls, establishment of independent regulatory institutions, delicensing of thermal generation and establishment of unbundled power generating, transmission and distribution companies operating on commercial principles for making available good quality power to all. Competition was to be the cornerstone for bringing in operational efficiency and it was considered that competition will determine the price rather than any cost plus exercise on the basis of operating norms and parameters. But this was a dream too Utopian to come true.