New Delhi, Dec 20 Draft Electricity (Amendment) Bill, 2025, is of great national importance as it seeks to strengthen the legislative foundation of India’s power sector in the context of the aspirations for 'Viksit Bharat 2047', Manohar Lal Khattar, Union Minister for Power and Housing & Urban Affairs, said on Saturday.
The minister, in a parliamentary consultative committee meeting, wherein Members of Parliament of various political parties from Lok Sabha and Rajya Sabha took part, said that after the enactment of the Act in 2003, the country has made commendable progress in all aspects of the power sector.
However, challenges, especially in the distribution segment in the form of persistent financial stress, continue.
He informed that the provisions in the Bill have been proposed to mandate cost-reflective tariffs and to empower Commissions to act suo- motu when utilities delay tariff filings.
Khattar clarified that State Governments may continue to provide subsidies to priority consumer groups, such as domestic and agricultural consumers, and there may not be any increase in cost for such consumers.
This ensures that financial discipline and consumer welfare go hand in hand. The Bill also seeks to enhance the economic competitiveness of the Indian industry.
The Bill also proposes to empower SERCs, in consultation with the State Government, to exempt DISCOMs from the obligation to supply large consumers.
These consumers can procure power at competitive rates from other sources. At the same time, the fixed cost burden on DISCOMs associated with supplying electricity to these consumers will be reduced. This will benefit smaller consumers.
The minister clarified that the large consumers will have a choice to exit after giving notice with a reasonable time.
He also noted that supporting the increased use of electricity from non-fossil sources is a collective responsibility.
A minimum obligation for the use of non-fossil source electricity is proposed under the Bill.
To ensure the availability of cost-competitive and adequate renewable energy, it is proposed that capacity addition will also be enabled through market mechanisms in addition to through agreements by the DISCOMs, which will also reduce the burden on DISCOMs.
He also informed that the Government is committed to enhancing ease of living and ease of doing business. The Bill proposes provisions to ensure better service for the general public, reduce financial and compliance burden, and create a better environment for business.
To strengthen regulatory governance, several provisions have been proposed under the draft Bill.
The draft Bill also proposes to expand the strength of APTEL to handle increasing case loads.
The Bill includes important operational reforms, such as incorporating Right-of-Way provisions directly in the Act. The Bill also proposes enabling distribution network sharing to avoid duplication.
The minister emphasised that by allowing the sharing of the network, the consumers will benefit.
He clarified that the apprehensions about privatisation and an increase in cost or adverse effect on employees have no basis.
Suitable regulatory and policy measures will be taken to ensure that there will not be any adverse effect on any class of consumers or employees.
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