Abstract
This paper is a discussion about the introduction of restructuring and deregulation in Indian Power System. In modern era, deregulation has an important impact on power sector. In this paper, recent use of deregulation in Indian Power Sector has been described and measures to be taken in order to improve deregulation are also suggested.
Highlights
In current time, due to rise in power demand and supply, it is not an easy task to manage the generation and cost concurrently for one single party
To reduce monopoly of one organization and to provide quality and continue reliable power supply at reasonable cost, it is essential to encourage competition in power market. This can be possible by introducing restructuring and deregulation in electrical power sector
Recent Initiatives The Electricity Act 2003 makes thermal power are-licensed activity, freely permits captive generation and makes the setting up of state regulatory commissions mandatory. It recognizes the trading as a distinct commercial activity and suggests measures like preparation of National Electricity Policy for planned development of the sector
Summary
Due to rise in power demand and supply, it is not an easy task to manage the generation and cost concurrently for one single party. To reduce monopoly of one organization and to provide quality and continue reliable power supply at reasonable cost, it is essential to encourage competition in power market. This can be possible by introducing restructuring and deregulation in electrical power sector. 1. Unbundling of SEB: A number of States have initiated the power sector reform process, starting the unbundling, tariff rationalization and corporatization of generation, transmission and distribution. Unbundling of SEB: A number of States have initiated the power sector reform process, starting the unbundling, tariff rationalization and corporatization of generation, transmission and distribution This brings the accountability at each level of operations in the power business. Self-sustainability is not achieved through this makeup unless privatization is introduced in stages starting from urban areas
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