| Category | Details |
|---|---|
| Bill Name | Electricity (Amendment) Bill, 2025 |
| Key Objective | Modernize India's power sector by introducing competition, efficiency, and consumer-friendly reforms. |
| Major Reforms | - Competition in Distribution: Multiple licensees in the same area, ending monopoly.- Universal Service Obligation (USO): Ensures non-discriminatory access.- Tariff Rationalization: Mandates cost-reflective tariffs, reduces cross-subsidies for industries/railways in 5 years.- Infrastructure Efficiency: Shared networks, recognition of Energy Storage Systems (ESS).- Regulatory Strengthening: Establishes Electricity Council, empowers SERCs for timely decisions. |
| Protected Groups | Farmers and low-income households retain fully subsidized tariffs. |
| Cross-Subsidy Phaseout | Industries, railways, and metro rail to transition to cost-based tariffs in 5 years. |
| Sustainability Focus | Enhances non-fossil energy procurement, aligns with clean-energy goals. |
| Governance Reforms | - Electricity Council for Centre-State coordination.- SERCs gain penalty-imposing powers, can issue tariff orders suo motu. |
| Static Facts | - AT&C Losses: High losses in DISCOMs prompted reforms.- ISTS Model: Inspired distribution reforms.- Market Development: Encourages power trading platforms. |
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