Distribution:
This has been recognized as the most critical segment of the electricity business. Here the NEP calls for proper restructuring of distribution utilities for achieving effectiveness gains in distribution. It lays special emphasis on time bound reduction of transmission and distribution losses and advocates promotion of competition aimed at consumer benefits.
Multi-Year Tariff (MYT), that has been provided in the Electricity Act, 2003, would be an significant structural incentive in minimizing risks for utilities and consumers, promoting efficiency and facilitating rapid reduction of system losses.