Overview
- The Power Ministry plans to introduce the Bill in the Budget session beginning January 28 after a consultation Shivir that will also take up Group of Ministers’ ideas such as linking tariffs to inflation.
- The draft opens distribution to multiple licensees using existing networks through non‑discriminatory access to avoid duplicating infrastructure.
- State regulators would gain power to set cost‑reflective tariffs on a suo motu basis, with added measures such as expanding APTEL capacity, codifying right‑of‑way, and establishing an Electricity Council.
- States may continue subsidies for priority consumers, while large users could be exempted from mandatory discom supply to procure power directly and reduce cross‑subsidies.
- The ministry highlights a ₹2,701 crore FY25 profit for discoms even as about 50 remain loss‑making, while unions and some stakeholders criticize the reforms as a route to privatization.