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With reference to the Electricity (Amendment) Bill, 2022, consider the following statements:
1. The Central Electricity Regulatory Commission (CERC) will grant licenses for distribution of electricity in more than one state.
2. It adds that a discom must provide non-discriminatory open access to its network to all other discoms operating in the same area, on payment of certain charges.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the Electricity (Amendment) Bill, 2022, consider the...
Electricity (Amendment) Bill, 2022
  • License for distribution in multiple states: The Central Electricity Regulatory Commission (CERC) will grant licenses for distribution of electricity in more than one state.
  • Multiple discoms in the same area: The Bill removes the earlier act clause which required discoms to distribute electricity through their own network.
    • It adds that a discom must provide non-discriminatory open access to its network to all other discoms operating in the same area, on payment of certain charges.
  • Power procurement and tariff:  Provisions with regard to graded revision in tariff over a year besides mandatory fixing of maximum ceiling and minimum tariff by
  • Cross-subsidy Balancing Fund: Upon grant of multiple licenses for the same area, the state government will set up a Cross-subsidy Balancing Fund.  The fund will be used to finance deficits in cross-subsidy for other discoms in the same area or any other area.
    • About Cross-subsidy: It refers to the arrangement of one consumer category subsidising the consumption of another
  • Contract enforcement: The Bill empowers the CERC and SERCs to adjudicate disputes regarding contracts related to the sale, purchase, or transmission of electricity.  Further, the Commissions will have powers of a Civil Court.
Hence both statements are correct.
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With reference to the Electricity (Amendment) Bill, 2022, consider the following statements:1. The Central Electricity Regulatory Commission (CERC) will grant licenses for distribution of electricity in more than one state.2. It adds thata discom must providenon-discriminatory open accessto its network to all other discoms operating in the same area, on payment of certain charges.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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