Electricity Act Amendments Will Not Raise Tariffs: Power Minister Khattar

(MENAFN- KNN India) New Delhi, Dec 22 (KNN) Union Power Minister Manohar Lal Khattar has said that the proposed amendments to the Electricity Act will not lead to any increase in electricity tariffs, and eligible consumers will continue to receive subsidies from their respective state governments.

Chairing a meeting of the Parliamentary Consultative Committee on Power, the minister clarified that the draft Electricity (Amendment) Bill, 2025 mandates only 'cost-reflective' tariffs and strengthens regulatory oversight, without adversely impacting consumers.

Subsidies and Regulatory Reforms

Khattar said state governments will retain the power to provide subsidies to priority consumer groups such as domestic and agricultural users. He added that suitable regulatory and policy measures would be taken to ensure there is no adverse impact on any class of consumers or employees.

According to the minister, the proposed amendments empower electricity regulatory commissions to take suo motu action in cases where power distribution companies (DISCOMs) delay tariff filings. The Bill also aims to reduce distortions arising from cross-subsidies and surcharges.

Khattar said the Bill proposes a minimum obligation for the use of electricity from non-fossil fuel sources. It also enables capacity addition through market mechanisms, alongside DISCOM power purchase agreements, to ensure the availability of cost-competitive renewable energy.

Support for Industry and MSMEs

The draft Bill seeks to make electricity costs more reasonable for industry, including MSMEs, to support growth, employment generation and global competitiveness.

It also proposes to allow state electricity regulatory commissions to exempt DISCOMs from supplying power to large consumers, enabling such consumers to procure electricity from alternative sources at competitive rates.

Institutional and Operational Reforms

The proposed legislation includes provisions to expand the strength of the Appellate Tribunal for Electricity to handle rising caseloads. It also seeks to introduce operational reforms such as incorporating right-of-way provisions and enabling distribution network sharing to avoid duplication of infrastructure.

Additionally, the Bill envisages the establishment of an Electricity Council to promote cooperative federalism and build national consensus on power sector reforms.

(KNN Bureau)

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