Following are three services needed in supply of electricity
(i) Generation of electricity
(ii) Transmission of electricity
(iii) Distribution of electricity
All these services should be in different hands. Transmission of electricity should be in the hands of the government. The government and private sector may operate in the areas of generation of electricity and distribution of electricity. It would bring in more and more financial resources in power sector as well as competition.
Why do we require grid for transmission of electricity?
Primary sources for electricity power are unevenly distributed and the generation plants are also unevenly located. Thus, bulk transmission of electric power over long distances becomes necessary. We require grid to synchronise power generation with transmission and distribution of electricity. Grid facilitates economising and increasing reliability. Grid avoids overloading of transmission lines, frequent breakdowns and loss of surplus power.