core sector communique

Ministry of Power Prepares Standard Bidding Document for Private Participation in Distribution of Electricity

The Minister of State for Power, Shri K.C. Venugopal, informed Lok Sabha in a written reply that the Ministry of Power has prepared a Standard Bidding Document for appointment of Input based urban distribution franchisee on the basis of recommendations of the Task Force on `Private Participation in Distribution of Electricity`. Ministry of Power has recommended that the Distribution Franchisee model may be adopted by the States and State Power Utilities with suitable customization as per their need. As per the provisions of this Standard Bidding Document, in case the Utility is unable to provide sufficient energy to meet the requirement of the franchise area, the franchisee may request the Utility to source extra energy from the open market. The Utility need to comply with Section 86(1)(b) of the Electricity Act, 2003 by making necessary applications to the State Electricity Regulatory Commission for scrutiny and approval. The Distribution Franchisees need to identify the additional sources of power purchase and the price for the same. The Utility shall be responsible for justifying the need for power, its price, its contractual arrangement under power purchase agreements, for scrutiny and approval of the State Electricity Regulatory Commission.