Guwahati, March 31: The Assam government today introduced the much-awaited Assam Electricity Bill, 2003 which aims to provide universal access to power at “competitive and affordable” prices within a “defined timeframe”.

To achieve its stated objective, the Bill seeks to end the Assam State Electricity Board’s (ASEB) monopoly by facilitating private participation in the power sector.

It also advocates restructuring of the ASEB to create independent corporate entities by separating generation, transmission and distribution of power.

The transmission of power would be separated as an independent function for creation of transmission highways with non-discriminatory open access.

The Bill also seeks to regulate the electricity industry in a fair, transparent, predictable and participatory manner. It proposes compulsory metering for enhancing accountability and viability and stringent provisions to minimise theft and misuse of electricity.

Power minister Devanand Konwar, while tabling the Bill in the House today, assured that there would be no retrenchment of ASEB staff.

Konwar said the need for such a legislation was felt to restructure and modernise the ASEB to meet the increasing demands placed in the electricity industry.

The government said once the Bill is enacted, competition, economy and efficiency would be promoted keeping in mind the best interests of the consumers and the state’s economy.

Since the Bill seeks to modify the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commission Act, 1998, the assent of the President will be necessary before the proposed Bill comes into effect.

Keeping in mind the social responsibilities of the government to provide electricity in rural areas and to economically weaker persons, the Bill advocates a state electricity plan prepared once in five years and an annual electricity plan. The plans would contain the state electricity policy and short term and perspective plans for development of the electricity system.

The Bill, however, would not disturb the present entitlements of Assam to cheaper power from existing generating stations and would also not curtail the state’s intervention in policy matters.

Despite vociferous opposition by business groups and individuals, the Assam Electricity Regulatory Commission (AERC) had already approved a 13.46 per cent increase in power tariff to help the sick ASEB mop up additional revenue to the tune of Rs 893 crore annually.

However, the hike is much less than the 50 per cent increase in revenue income sought by the ASEB to meet the gap between its estimated revenue requirement and revenue generated through existing tariff.

The new structure will become applicable from April 1.