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To provide a liberal and progressive framework for growth of power sector, introduction of competition in different segments of generation, trading and distribution of electricity was introduced. This was the main objective of The Electricity Act 2003, which has removed barriers to entry of private sectors in these segments. Many measures to ensure protection of interests of the consumers in terms of quality of service, price regulation, right to get service on demand and redressal of grievances have been brought into effect with the implementation of this Act. It also provides appropriate institutional mechanisms for achieving the goal of supply of electricity to all areas. The framework for reorganisation of the State Electricity Boards in a time frame to be decided by the State Government with consent of the Central Government is also laid down in this Act.

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