The Central government is lining up big-ticket power sector reforms that will change the architecture of domestic electricity market. The Centre intends to make it more responsive and reduce cost for distribution utilities as well as consumers through intense competition.
The reforms will revolve around encouraging discoms to buy bulk of the power through trading platforms, just like in developed markets such as Europe. This will bring about several changes down the value chain. The Ministry of Power has set up an expert panel headed by Special Secretary in the Ministry to chart a course for deepening of power markets in India.
Generators will optimise their capacity and source–coal, hydel, renewables –and compete to offer lower tariffs. The move will reduce the cost of power purchase for discoms, which will have to manage the demand-supply slate more efficiently and be nimble enough to be able to tie up cheaper power when on offer.
On the consumer end, prepaid meters are being rolled out. Moreover, there is plan for introducing time-of-the-day tariff and open access for large consumers by separating carriage and content.