Government's Stance on Electricity (Amendment) Bill 2025
The Power Ministry views the Electricity (Amendment) Bill, 2025 as a progressive reform aimed at introducing competition, efficiency, and accountability in the distribution sector while protecting subsidized tariffs for farmers and low-income consumers.
The Ministry has assured that State Governments may continue to provide these subsidies under Section 65 of the Act.
The Bill is expected to foster healthy competition between government and private DISCOMs in electricity supply, under the supervision of State Electricity Regulatory Commissions (SERCs). According to the Ministry, the passage of the Bill will lead to better service, greater efficiency, and more choices for consumers.
Key Features of the Bill
- Introduction of cost-reflective tariffs to break the DISCOM debt cycle
- Encouragement of competition between government and private utilities
- Supervision of electricity supply by SERCs
Author's summary: The Electricity (Amendment) Bill 2025 aims to reform the power distribution sector.
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