Electricity bill seeks cost-reflective tariffs

New Delhi: The draft Electricity (Amendment) Bill, 2025 proposes mandating cost-reflective tariffs and empowering electricity regulatory commissions to act suo motu when utilities delay tariff filings, Union power minister Manohar Lal said on Saturday.State governments may continue to provide subsidies to priority consumer groups such as domestic and agricultural users, Lal said, adding that there may be no increase in costs for these consumers.He was speaking after chairing a meeting of the Parliamentary Consultative Committee to discuss the proposed amendments, which have been released by the power ministry for stakeholder consultation, according to a statement.The bill aims to boost economic competitiveness by reducing distortions arising from cross-subsidies and surcharges, thereby supporting Indian industry, including micro, small and medium enterprises, Lal said.It also proposes to empower state electricity regulatory commissions, in consultation with state governments, to exempt distribution companies from the obligation to supply large consumers, allowing them to procure power at competitive rates from other sources."At the same time, the fixed cost burden on distribution companies associated with supplying electricity to these consumers will be reduced," Lal said, adding that this would benefit smaller consumers. Large consumers would have the option to exit after giving reasonable prior notice.The bill also proposes a minimum obligation for the use of non-fossil fuel-based electricity and provides for renewable capacity addition through market mechanisms to ensure the availability of cost-competitive and adequate clean energy.