City
Epaper

New electricity amendment bill set to modernise India’s power sector

By IANS | Updated: November 22, 2025 17:45 IST

New Delhi, Nov 22 The government on Saturday said that the Electricity (Amendment) Bill, 2025 introduces key reforms ...

Open in App

New Delhi, Nov 22 The government on Saturday said that the Electricity (Amendment) Bill, 2025 introduces key reforms to modernise India’s power sector, promoting competition in distribution, strengthening regulatory oversight, and supporting fair pricing mechanisms.

The Bill was brought forward to resolve deep-rooted inefficiencies, like persistent financial losses in distribution companies (discoms) due to poor billing efficiency, high aggregate technical and commercial (AT&C) losses; lack of competition in electricity supply, with consumers tied to a single discom, limiting service quality and innovation; and cross-subsidisation distortions, where industrial users pay inflated tariffs to subsidise other categories, making Indian manufacturing less competitive.

According to an official document, it facilitates regulated competition in electricity distribution, allowing multiple licensees to operate in the same area using shared and optimized infrastructure.

The Bill also mandates Universal Service Obligation (USO) for all licensees, ensuring non-discriminatory access and supply to all consumers, while enabling SERCs to make Distribution licensees free from USO, in consultation with State Governments, for large consumers eligible for Open Access (more than 1 MW).

The Bill not only promotes cost-reflective tariffs while protecting subsidised consumers (farmers, poor households) through transparent budgeted subsidies under Section 65, but also seeks to eliminate cross-subsidy for the Manufacturing Industry, Railways, and Metro railways within five years.

It also empowers Appropriate Commissions to regulate wheeling charges and prevent duplication of distribution networks and introduces provisions for Energy Storage Systems (ESS) and defines their role in the electricity ecosystem.

The Bill establishes an Electricity Council for Centre-State policy coordination and consensus-building and empowers State Electricity Regulatory Commissions (SERCs) to enforce standards, penalise non-compliance, and determine tariffs suo moto if applications are delayed.

The Electricity (Amendment) Bill, 2025 is a major step toward transforming India’s power system to meet the needs of a rapidly growing economy, said the document.

Notably, the reforms fully protect subsidised tariffs for farmers and low-income households.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Open in App

Related Stories

InternationalUS lawmaker introduces bill for Greenland's 'annexation and statehood'

EntertainmentAkshay Oberoi: ‘Toxic’ has been one of the most demanding experiences of my career

InternationalTrump briefed on military, cyber, psychological options against Iran amid nationwide protests: Reports

CricketHarbhajan Singh welcomes Bathinda Premier League, says many cricketers will get an opportunity

BusinessStock Market Holiday on January 15, 2026: BSE, NSE to Remain Closed for Maharashtra Municipal Elections

National Realted Stories

NationalWe express gratitude towards nature: Prez Murmu on Lohri, Makar Sankranti, Pongal, Magh Bihu

NationalArunachal, Sikkim share deep cultural and ecological ties: Governor Parnaik

NationalRajasthan Police detain accused from other state in school student rape case

NationalPM Modi, HM Shah committed to safeguarding Tripura tribals’ constitutional rights: TMP chief

NationalOdisha: Police bust interstate cybercrime gang; 7 arrested