New Delhi: The Ministry of Energy has proposed a number of reforms in this sector through a draft amendment to the 2003 Electricity Act. It is among the key proposals to give more teeth on state regulatory commissions to correct the tariffs and end the cross preliminary objects. The aim of the proposals is to involve losses of “assembly” in the energy sector and increase economic growth.
On Thursday, the Ministry circulated a bill on electricity change 2025 and was looking for feedback from the parties to the parties within 30 days.
Currently, distribution of energy is proposed by the Commission for Fiscal Year of Energy Tariffs. The ministry recorded a delay in the revision of the discussomas and at the same time proposed the regulatory body to revise the tariffs.
“The notification of the tariffs before the start of the financial year has led to losses to consolidate the distribution sector. At present, the law does not explicitly allow the relevant commissions to determine tariffs on the basis of Moto Moto before the start of the financial year,” said the ministry, “said the ministry,” said the ministry, ” The ministry said, ”the ministry said,” the ministry said.
“This will ensure that revised tariffs will be carried out from 1 April of each financial year, which will improve the overall financial discipline in the energy sector sector,” the proposed draft of the Electricity Act said.
Cumulative financial losses of discom exceeded £6.9 trillion, the ministry said.
The revision of the power tariffs was a sensitive problem in the country because it affects the budget of a common person. Several state governments and political parties have resorted to subsidies and regular revisions are not common.
In the next step, which may affect tariffs, the ministry proposed a progressive reduction in cross inquiries. He proposed that the crushed question with regard to manufacturing companies, railways and metro will be fully removed within five years from the date of the start of the Electricity Act (amendment), 2025.
In the energy sector, Cross-Subsidy is a mechanism where some consumers, usually industrial or commercial users, pay higher electricity tariffs to cover subsidized energy costs to other consumer groups such as households and farmers.
Note on proposals said that the regulatory delay weakened the financial viability of the sector, while the high recesses induced by high industrial tariffs affected competitiveness and limited economic growth.
Industrial electricity tariffs in India remain significantly higher than in developed countries, such as the US and developing economies such as China, Vietnam and Indonesia.
Discom privatization
The Ministry also revived its plans to open the energy distribution sector in India and try to allow more discom to satisfy one area through the existing distribution infrastructure. This will allow private companies to enter electricity distribution, a domain dominating state -owned companies.
The law currently allows parallel license holders to supply electricity in the same supply area, but with their own network, which can potentially lead to duplication of distribution networks. Currently, only one discom works in specific regions.
“The proposed change explicitly requires non -discriminatory open access to the existing distribution network to solve this problem. This ensures that more suppliers can use existing infrastructure, eliminate redundancy and reduce the total infrastructure costs,” the ministry said.
A similar attempt was made by the government in 2022. However, the proposal of the amendment was later laid on Backburner in the middle of the opposition of some states and employees’ trade unions of the energy sector sector.
This framework “optimizes resource use, improves the quality of service and will contribute to the delivery of more affordable and reliable electricity to end users,” he said.
Tata Power, Adani Group, Torrent Power and RP-Sanjiv Goenka Group CESC LTD are the main private players currently in this space. India has about 67 discomings, of which 16 operated by the private sector in Delhi, Mumbai, Odisha, West Bengal, Gujarat and Dadra and Nagar Havel.
The proposed reforms come at a time when the government focuses on the privatization of state discom because these tools are financially emphasized.
(Tagstotranslate) Electricity Act (T) Revision of energy tariffs
