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The Genesis of Electricity Reform in India and the UK, its Repercussions and the Way forward

In: Sustainable Development Insights from India

Author

Listed:
  • Somit Dasgupta

    (Indian Council for Research on International Economic Relations (ICRIER))

Abstract

This is a short essay tracing the origin of power sector reforms in India, how it evolved and what was the architecture that was followed. A comparison has been made with the power sector restructuring program followed in the UK with specific reference to competition. Does the Indian restructuring program really usher in competition or is it merely unbundling into separate entities which makes no material difference in terms of efficiency and growth? The essay briefly describes how the power sector performed in India, post-restructuring and what has been the contribution of the regulatory bodies, if any. Have the regulatory bodies been proactive as in the case of UK or have they degenerated into passive organisations only doing the government’s bidding? The essay finally suggests a way forward on how to improve the functioning of the distribution sector and the recommendation that is being made is privatisation of the distribution companies. It is strongly felt that public-owned distribution companies can never deliver since there is a clear lack of accountability which gets further complicated on account of government interference. Despite restructuring, the government still feels that the distribution companies are no better than its own backyard.

Suggested Citation

  • Somit Dasgupta, 2021. "The Genesis of Electricity Reform in India and the UK, its Repercussions and the Way forward," India Studies in Business and Economics, in: Purnamita Dasgupta & Anindita Roy Saha & Robin Singhal (ed.), Sustainable Development Insights from India, pages 143-164, Springer.
    • Handle: RePEc:spr:isbchp:978-981-33-4830-1_7
    DOI: 10.1007/978-981-33-4830-1_7
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    Cited by:

    1. Shameem P, Mohammed & Chittedi, Krishna Reddy, 2022. "Strides for aberrations: The Electricity (Amendment) Bill, 2021 of India," Energy Policy, Elsevier, vol. 165(C).

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