New Delhi, Dec 20 (NationPress) The Draft Electricity (Amendment) Bill, 2025, holds significant national relevance as it aims to bolster the legislative framework of India's power sector in line with the vision for 'Viksit Bharat 2047', stated Manohar Lal Khattar, the Union Minister for Power and Housing & Urban Affairs, on Saturday.

During a parliamentary consultative committee meeting attended by Members of Parliament from various political parties in both Lok Sabha and Rajya Sabha, the minister remarked that the country has made substantial advancements in all facets of the power sector since the enactment of the Act in 2003.

However, ongoing challenges, particularly in the distribution sector, such as persistent financial strain, remain.

He highlighted that the provisions of the Bill are designed to enforce cost-reflective tariffs and empower Commissions to take action when utilities delay tariff filings.

Khattar clarified that State Governments may continue offering subsidies to priority consumer groups, including domestic and agricultural consumers, ensuring no extra costs for these groups.

This approach guarantees that financial discipline aligns with consumer welfare. Additionally, the Bill aims to enhance the economic competitiveness of the Indian industry.

By minimizing distortions from cross-subsidies and surcharges, the Bill seeks to support Indian industries, particularly MSMEs, fostering growth, job creation, and global competitiveness. He stressed the importance of making electricity costs manageable for industries, benefiting all citizens.

Furthermore, the Bill proposes to empower State Electricity Regulatory Commissions (SERCs), in collaboration with State Governments, to exempt DISCOMs from the obligation to supply large consumers.

Large consumers will have the option to procure power at competitive rates from alternative sources, thereby reducing the fixed cost burden on DISCOMs, which will, in turn, benefit smaller consumers.

Khattar also noted that large consumers will have the flexibility to exit after providing a reasonable notice period.

Moreover, he acknowledged the collective responsibility to promote the increased use of electricity derived from non-fossil sources.

The Bill proposes a minimum obligation for utilizing electricity from non-fossil sources.

To ensure the availability of cost-effective and sufficient renewable energy, it suggests enabling capacity addition through market mechanisms, alongside agreements with DISCOMs, alleviating their burden.

The Government is committed to improving both the ease of living and the ease of doing business. The Bill includes provisions to enhance public service, reduce financial and compliance burdens, and create a more favorable business environment.

To fortify regulatory governance, several measures have been proposed in the draft Bill.

It also seeks to expand the capacity of the Appellate Tribunal for Electricity (APTEL) to manage increasing case loads effectively.

The Bill encompasses vital operational reforms, such as incorporating Right-of-Way provisions directly into the Act and promoting distribution network sharing to eliminate duplication.

Khattar emphasized that enabling network sharing will benefit consumers.

He assured that concerns regarding privatization, potential cost increases, or negative impacts on employees are unfounded.

Appropriate regulatory and policy actions will be implemented to ensure no adverse effects on any consumer class or employees.