The new system of distribution of electricity will be called Market Based Economic Despatch (MBED). Under this, according to the proposal of the Ministry of Power, it is envisaged to give annual consumption of about 1400 billion units of electricity under centralized scheduling.
Image Credit source: ANI
The central government is contemplating to bring a new policy regarding the distribution of electricity. Under this the existing decentralized and voluntary pool based power sharing Centralized policy can be adopted by eliminating the system of In such a situation, the dispute between the central and state governments has increased. Because this new system can eliminate their quota to be decided by the states keeping in view the weather and demand. At the same time, the central government is considering to bring this system for the whole of India.
The new system of distribution of electricity will be called Market Based Economic Despatch (MBED). Under this, according to the proposal of the Ministry of Power, it is envisaged to give annual consumption of about 1400 billion units of electricity under centralized scheduling. Presently the decentralized model is being adopted under the Electricity Act, 2003.
Government considering MBED system
This new system named MBED is being seen as a loss to the states. Because this will affect the state’s own system, under which they are handling their own power sector. At the same time, the Ministry of Power of the Central Government is planning to do this with a view to further improve the energy market of MBED. He is seeing the vision of ‘One Nation, One Grid, One Frequency, One Price formula’. According to the Indian Express report, SL Rao, former chairman of the Central Electricity Regulatory Commission and a member of the Advisory Board of the Competition Commission of India, has said that there is a need to address the problems being faced in the distribution of electricity.
Experts spoke of the challenges
SL Rao has said that the proposed MBED is against the existing constitutional provisions, existing legislative structure and market structure. He says that in view of the overall grid management in this proposal, there are many challenges. Whereas it will also affect the ownership of the states. At the same time, the central government says that the current model of the states of scheduling is less than high quality. Under this, the Security Constraint Economic Dispatch (SCED), a system created by LLDC, was being seen as a solution.
government is talking about profit
At the same time, a government official says that MBED is based on the central government’s vision of One Nation, One Grid, One Frequency, One Price Framework. He says that with this the resources of electricity generation in the country will reach at low prices. This will also meet the electricity demand of the entire country. Along with this, it will be beneficial for the distribution companies and producers and the savings of the consumers will also increase.