Lok Sabha Question No. 98 (UNSTARRED), answered on 2026-01-29
Subject: Electricity (Amendment) Bill, 2025
Ministry: POWER
Asked by: Dr. Prashant Yadaorao Padole

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.98 ANSWERED ON 29.01.2026

## ELECTRICITY (AMENDMENT) BILL, 2025

98. DR. PRASHANT YADAORAO PADOLE:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  has  released  the  draft  Electricity  (Amendment)  Bill, 2025, proposing major reforms, including cost-reflective tariffs, open access, regulatory accountability and push for non-fossil fuel generation and if so, the details thereof;
- (b) the  details  of  the  key  features  of  the  proposed  bill  relevant  to  distribution companies (DISCOMs), electricity regulators and consumers in remote / tribal districts;
- (c) whether these features would apply specifically in Maharashtra and if so, the details thereof;
- (d) whether the Ministry intends to introduce safeguards or special provisions within the reform framework to protect vulnerable consumers (such as tribal households) from tariff shocks or service disruption and if so, the details thereof; and
- (e) the timeline by which the Bill is expected to be passed, rules notified and the same is implemented in tribal and backward districts of Maharashtra?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

- (a) & (b) : Central  Government  has  issued  the  draft  Electricity  (Amendment)  Bill, 2025, proposing comprehensive reforms in the power sector. The draft Bill seeks to take measures  for  financial  sustainability,  promote  competition,  strengthen  regulatory accountability, and accelerate India's transition towards non-fossil fuel-based electricity generation, in alignment with the vision of Viksit Bharat @ 2047. The key reforms proposed are outlined below:
- i. Financial Viability: The financial sustainability of distribution licensees is critical for  reliable  and  affordable  electricity.  The  proposed  amendments  mandate  costreflective tariffs, empower Commissions to determine tariffs suo motu effective 1 st  April each year.
- ii. Economic  Competitiveness:  High  industrial  tariffs,  cross-subsidies,  and  rising procurement costs have weakened industrial competitiveness. The proposed reforms aim to rationalise tariffs, unlock demand, reduce costs, and enhance India's economic productivity and global competitiveness.

……..2.

iii. Energy  Transition:  To  achieve  500  GW  of  non-fossil  capacity  by  2030,  the amendments  propose  empowering  CERC  to  introduce  market-based  instruments  to attract investment and accelerate renewable capacity addition. Enforceable non-fossil energy  obligations  are  also  proposed  to  align  the  Electricity  Act  with  the  Energy Conservation Act.

iv. Ease of Living and Ease of Doing Business: The amendments propose uniform national standards of service to improve supply quality and accountability. Consumerfriendly measures include capping assessment for unauthorised use to one year, and reducing appeal pre-deposit requirements.

v. Regulatory  Strengthening:  To  enhance  accountability  and  efficiency,  it  is proposed that Governments may refer complaints against CERC and SERC Members, with expanded grounds for removal. A 120-day timeline is proposed for adjudicatory decisions, and the strength of APTEL is proposed to be increased to address pendency.

vi.  Other  Reforms:  Powers  for  installation  and  maintenance  of  electric  lines  are proposed to be transitioned from the repealed Telegraph Act, 1885 into the Electricity Act, 2003, with States framing compensation framework. To reduce network duplication and costs, distribution licensees are proposed be permitted to supply electricity through shared networks, subject to regulatory approval and charges.

(c) : Upon enactment, the provisions of the Electricity (Amendment) Bill, 2025 shall apply uniformly across all States, including Maharashtra.

(d) : Subsidies  for  specified  consumer  categories  including  tribal  households  may continue to be transparently funded by the State Government under Section 65, without compromising the financial sustainability of power sector.

(e) : The stakeholders comments on the draft Electricity (Amendment) Bill, 2025 were invited on 9 th  October, 2025. The bill is currently in consultation stage and extensive consultation with different categories of stakeholders is in process.

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