Search for a command to run...
The Centre has introduced the Electricity (Amendment) Bill, 2025, with the objective of reshaping the country’s electricity ecosystem to better support a fast-expanding economy. The reform seeks to make Indian industry and logistics more competitive by rationalising electricity costs, reducing the burden of hidden cross-subsidies, and ensuring uninterrupted and affordable power to all — from households and farmers to commercial establishments and major industries. A key pillar of the Bill is its push for cost-reflective tariffs to strengthen long-term financial sustainability in the sector while continuing to guarantee subsidised tariffs for farmers and low-income consumers. By promoting accountability, transparency, and efficient use of shared networks, the Bill aims to prevent duplication of infrastructure and accelerate nationwide modernisation of distribution systems. The overarching intent is to deliver reliable electricity, improve quality and supply standards, and ensure smooth coordination between the Centre and States for stronger policy implementation. These reforms form part of India’s broader vision for Viksit Bharat 2047, ensuring that the energy sector becomes resilient and future-ready. The Bill therefore seeks to rationalise cross-subsidies, promote direct power procurement for industries, and strengthen market-driven pricing while fully safeguarding subsidised power for farmers and eligible beneficiaries. At the regulatory level, State Electricity Regulatory Commissions (SERCs) will determine fair wheeling charges for shared distribution networks so utilities can maintain operations, invest in new infrastructure, and support employees. This framework ensures equitable cost sharing among all users — public or private — and prevents any monopoly in network expansion.