Liberalized Power Sector

Laws and rules becomes a source of hindrance and compactness to the companies and customers when they start extending their work and requirements respectively. Hence to make a balance and good relation between en-powered authority and consumer it is necessary to make a transparent policies and system. Power industry is one of such hindrance. Hence reform in power industry becomes notable point for the government. Inefficient system management, irrational tariff policies and many other factors are responsible for such reforms. Some utility companies voluntarily welcomed and many utility companies are forced to adopt such reforms. The goal of changing, i.e. re-regulation, or open asses is to enhance competition and bring consumers new choices and economic benefits. Under liberalisation, the former vertically integrated utility, which performed all the functions involved in power, i.e. generation, transmission, distribution and retail sales, is disaggregated into separate companies devoted to each function. This not only provides benefit to the consumers but also makes the service and system reliable, efficient and fast. Thus in simple words open asses is to privatize the electric power industry so as to reduce government commitment and functions. In this regard, gencos, transcos, and discos are formed with competition introduced to gencos and discos to stimulate their incentives in efficiency improvement. When efficiency grows up and electricity price goes down, it can in turn promote GDP growth