The Ministry of Power on Friday published the Draft Electricity Amendment Bill, 2025, inviting comments and suggestions from stakeholders within 30 days. The proposed amendments aim to ensure affordable, reliable, and clean electricity for all, while facilitating a seamless and equitable energy transition across the country.The draft outlines a series of structural and regulatory changes, including a mandate for Electricity Regulatory Commissions to determine cost-reflective tariffs, aimed at improving transparency and financial sustainability in the power sector.
States will, however, retain the flexibility to support specific consumer categories by providing advance subsidies on their behalf.To strengthen regulatory oversight, the Bill seeks to empower State Electricity Regulatory Commissions (SERCs) to determine tariffs suo motu in cases where distribution companies delay filings, thereby enforcing financial discipline. The Central Electricity Regulatory Commission (CERC) will be authorised to introduce market-driven instruments to attract private investment and accelerate renewable capacity addition.Also Read: India’s renewable energy minister calls for aid in solar power for LDCs, small island nationsThe draft also proposes empowering the Central and State governments to refer complaints against members of the CERC and SERCs for non-performance of duties, as well as enhancing the role of the Central Electricity Authority (CEA) in ensuring the cybersecurity of integrated power system operations.To guarantee uninterrupted electricity supply, State Commissions may designate one distribution licensee to provide power at a premium over the cost of supply if existing arrangements fail. Additionally, the draft suggests that states develop a framework for fair land compensation, with unresolved disputes to be appealed before a District Judge.Despite earlier efforts at sectoral reform, the distribution segment continues to face cumulative losses exceeding ₹6.9 lakh crore, underscoring the urgency for robust and enforceable regulatory measures.The last major Electricity Amendment Bill was enacted in 2003, while subsequent attempts—including the 2022 draft, which faced political opposition and was referred to a Parliamentary Standing Committee—have yet to be passed by Parliament.
Source link
