Overview

• Private companies would be allowed to supply power in any area using shared distribution networks, ending the near-monopoly of state-run discoms.
• A National Electricity Council of Union and state power ministers would guide reform coordination, and the bill enables disciplinary action against CERC and SERC members for violations.
• The draft mandates cost-reflective tariffs, empowers regulators to revise tariffs suo motu from April 1 each year, and phases out cross-subsidies for manufacturing, Indian Railways and metros within five years as discom losses top ₹6.9 lakh crore.
• State regulators could exempt licensees from the universal service obligation for open-access consumers and designate a supplier to ensure uninterrupted power at a premium if needed.
• Regulators and the Centre would be empowered to develop power trading platforms and new market products to deepen competition and aid renewable integration.