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Proposed amendments to Electricity Act to strengthen discoms, says ICRA

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MUMBAI: The setting up of Electricity Contract Enforcement Authority (ECEA), as proposed by the the power ministry in its amendments to the Electricity Act, 2003, which can adjudicate upon matters related to specific performance of contracts related to purchase, sale or transmission of electricity, will help uphold the sanctity of power supply contracts, according to credit ratings agency ICRA. "While the establishment of ECEA is a positive move, there should be clear demarcation of responsibilities between existing regulators and ECEA to avoid jurisdiction issues," Girishkumar Kadam, sector head & vice president - corporate ratings, ICRA, said.

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