Home NATIONAL NEWSGovernment Proposes Shared Power Networks to Offer More Consumer Choice and Lower Costs

Government Proposes Shared Power Networks to Offer More Consumer Choice and Lower Costs

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India’s electricity grid showing multiple suppliers sharing the same network to provide affordable, reliable, and efficient power to consumers.

The central government has proposed a major overhaul in India’s electricity distribution system by allowing multiple power suppliers to use the same distribution network, a move aimed at cutting infrastructure costs and boosting efficiency. 

Under the plan, the existing requirement that each supply-company maintain its own set of wires and substations would be scrapped. Instead, licensed distributors including private or alternative providers could supply electricity through a shared network, giving consumers the power to choose their supplier. 

This network-sharing approach would reduce duplication of lines and substations, lower costs for distribution companies, and potentially result in cheaper or more affordable supply for end-users. 

Officials say the proposed changes come under the draft Electricity (Amendment) Bill, 2025, which also grants powers to regulators to revise tariffs independently and rationalise subsidy burdens, while keeping protections for domestic and agricultural consumers. 

If approved and implemented, this reform could bring competition to electricity supply, encourage better service quality, and make power distribution more efficient and cost-effective for consumers across the country.

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