Govt on Electricity (Amendment) Bill 2025
The Power Ministry views the Electricity (Amendment) Bill, 2025 as a progressive reform aimed at introducing competition, efficiency, and accountability in distribution while protecting subsidised tariffs for farmers and poor consumers.
According to the Ministry, State Governments can continue to provide subsidies under Section 65 of the Act. The Bill is expected to foster healthy competition between Government and Private Discoms in electricity supply, supervised by SERCs.
The passage of the Bill will result in better service, greater efficiency, and real choice for consumers.
The Ministry claims that the Bill will enable the Government and Private utilities to compete on performance, transforming monopoly supply into efficient, accountable, and consumer-friendly service.
Key Features of the Bill
- Cost-reflective tariffs to break the DISCOM debt cycle
- Encourages competition between Government and Private Discoms
- Supervised by SERCs
- State Governments can continue to provide subsidies under Section 65 of the Act
Author's summary: The Electricity (Amendment) Bill 2025 aims to introduce competition and efficiency in electricity distribution.
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