The draft Electricity (Amendment) Bill, 2025, aims to reform India’s power sector to improve financial sustainability, promote competition, and accelerate the transition to renewable energy.

Key proposals feature cost-reflective tariffs which will be mandated, with regulatory commissions determining tariffs annually starting 01 April. Tariff rationalisation will improve industrial competitiveness by reducing costs and enhancing global productivity. To meet the 500 GW non-fossil fuel target by 2030, market-based instruments will be introduced to attract investment and increase renewable capacity. For ease of living & business, uniform national service standards, consumer-friendly measures like capping unauthorised use assessments to one year, and reducing appeal deposit requirements are highlighted.

In regulatory terms, strengthening CERC and SERC accountability is proposed with expanded grounds for removal and a 120-day decision timeline. Other reforms include shifting powers from the Telegraph Act to the Electricity Act and allowing shared electricity networks to reduce duplication and costs.