Electricity is an indispensable resource to the growth of a nation. From mighty corporations to modest domestic households, everyone needs electricity to survive in this rapidly digitizing world. Although the Electricity Act 2003 provides a comprehensive framework to regulate the production and supply of electricity, a majority of the consumers are in the dark regarding their rights and options in the sector. Owing to the lack of transparency and accessibility to the low tension industrial and domestic consumers, the system does not adequately protect their interests and redress their grievances. Further, the manifest domination of the public sector undertakings in the various segments of the production and supply of electricity severely impedes competition in the industry, which in turn adversely impacts the consumer interest in terms of quality of services and the choices available. Therefore, there is an urgent need to reform the electricity sector in India so as to enhance competition in the industry and improve consumer choices.
CAG is working on an initiative titled “Supporting Tamil Nadu in Accelerating Clean Energy Share in its Power Sector” for accelerating the transition to clean energy in Tamil Nadu and improving the quality of participation of stakeholders in supporting the same. As part of the initiative, CAG is researching competition and regulatory aspects and its role in enhancing consumer choice in the sector. The aim of the present initiative is to research the electricity sector and identify possible areas of development and reformation to enhance competition and improve the consumer choices in the industry.