The draft legislation emphasises the financial viability of distribution licensees by mandating cost-reflective tariffs and empowering regulatory commissions to determine tariffs annually from April. It also targets rationalisation of industrial tariffs, reduction of cross-subsidies, and lowering procurement costs to enhance economic competitiveness and productivity.
Driving India’s Energy Transition
To achieve India’s ambitious goal of 500 GW of non-fossil electricity capacity by 2030, the Bill proposes empowering the Central Electricity Regulatory Commission (CERC) to introduce market-based instruments that attract investment and expedite renewable energy deployment. Enforceable obligations for non-fossil energy sources are planned to complement existing mandates under the Energy Conservation Act.
Ease of Living and Doing Business
The amendments propose uniform national standards of service, capping assessment for unauthorised electricity use to one year, and reducing appeal pre-deposit requirements. These measures are aimed at improving consumer protection, supply quality, and business efficiency across India.
Strengthening Regulatory Framework
Regulatory accountability is being enhanced through provisions allowing governments to refer complaints against CERC and SERC members with expanded grounds for removal. The Bill also proposes a 120-day timeline for adjudicatory decisions and increasing the strength of the Appellate Tribunal for Electricity (APTEL) to tackle case backlogs effectively.
Other Notable Provisions
The Bill transitions powers for installation and maintenance of electric lines from the repealed Telegraph Act, 1885, to the Electricity Act, 2003. Distribution licensees may supply electricity through shared networks, subject to regulatory approval, to reduce duplication and network costs. Subsidies for tribal and other specified consumer categories may continue under transparent state funding without compromising sector sustainability.
Consultation and Implementation
Stakeholder comments on the draft were invited on 9th October 2025, and extensive consultations with industry, regulators, and consumer groups are ongoing. Upon enactment, the Bill’s provisions will apply uniformly across all States, including Maharashtra, strengthening India’s power sector regulatory and operational framework.