The Electricity Act 2003:

The conceptual framework underlying this new legislation is that the electricity sector must be opened for competition. The Act moves towards creating a market based regime in the power sector. The Act also seeks to consolidate, update and rationalize laws related to generation, transmission, distribution, trading and use of power. It focuses on:

Creating competition in the industry

Protecting consumer interest

Ensuring supply of electricity to all areas

Rationalizing tariff

Lowering the cross-subsidization levels.