‘Domestic Power Market Up For Wholesale Changes’ Says Power Minister R K Singh, Signals Big-Ticket Reforms In Sector

The power sector in India, until now dominated by generators and DISCOMs working in safe compartmentalised silos, may be up for major reforms as the Power Ministry lines up measures to heat up competition between various entities, Economic Times reports.

“We are going to bring about a wholesale change the way we approach the power market. The idea is to make the sector more responsive and viable so that investments can come. Make it accountable to consumers on quality of service. Giving rights to consumers. Deepening of market is to create competition and encourage efficiency and flexibility,” Power Minister R K Singh has been quoted as saying in the report.

The reforms will help develop a closely connected domestic power market which will reduce the final costs for both the DISCOMs and final customers. Generators will be able to pitch the lowest tariffs which will help bring in efficiency at the supply side.

The power market will also help address the issue of delayed payments from DISCOMs to generators. On the customer side, prepaid meters are being installed across the country helping the DISCOMs with liquidity. Plans are also afoot to offer a time-of-the-day tariffs to large consumers along with open access to power.

Towards its plan, the ministry has appointed an expert group headed by a special secretary along with roping in consultants from Ernst & Young (E&Y) to suggest measures for piecing together the project.