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Competition Law and Competition Issues Affecting the Energy Sector in India

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  • Aurobinda Panda
  • Atul Patel

Abstract

India faces endemic electrical energy and peaking shortages. The power sector is plagued with mounting commercial losses due to various inefficiencies, colossal commercial and technical losses and increasing subsidy burden on the states. These shortages have had a very detrimental effect on the overall economic growth of the country. In order to revitalise the sector and improve the techno-economic performance, the Government of India initiated the reform process in 1991. This article analyses the pre-reform era and identifies the key concerns which led to the initiation of the reforms. It also analyses the likely impact of the major policy and regulatory initiatives that have been undertaken since 1991 including the provisions of the new enactments which have come into force eventually in the form of the Electricity Act, 2003. This article details out the key features of the Act and its likely impact on the Indian electricity industry in the emerging scenario. The article also discusses major issues like role of the regulator in the new regime, issue of open access, power trading, introduction of power markets and role of the Appellate Tribunal for Electricity in harmonising the orders of the various regulators. JEL Classification: K21, Q43

Suggested Citation

  • Aurobinda Panda & Atul Patel, 2011. "Competition Law and Competition Issues Affecting the Energy Sector in India," Journal of Infrastructure Development, India Development Foundation, vol. 3(2), pages 107-115, December.
    • Handle: RePEc:sae:jouinf:v:3:y:2011:i:2:p:107-115
    DOI: 10.1177/097493061100300201
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    References listed on IDEAS

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    More about this item

    Keywords

    Competition law; power sector; techno-economic; Indian electricity industry;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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