The government is moving ahead with a fresh round of power sector reforms through the proposed Electricity (Amendment) Bill 2025, aimed at improving reliability, strengthening consumer rights, and accelerating the transition toward clean energy. The draft proposal, currently under inter-ministerial consultation, outlines several structural and regulatory changes intended to address long-standing challenges in distribution, financial sustainability, and supply quality.
According to officials familiar with the development, the new bill seeks to promote greater competition in the electricity distribution sector by enabling multiple service providers to operate within the same area. This model is expected to give consumers more choices, encourage performance-based service delivery, and push poorly performing distribution companies to improve efficiency.
The proposal also strengthens provisions for payment security, ensuring timely clearance of dues between state utilities, generators, and transmission companies. Financial discipline remains a core focus, with the bill aiming to reduce the chronic problem of unpaid receivables that often disrupt power procurement and grid stability.
Another key feature is the emphasis on renewable energy integration. The bill is expected to refine regulations around energy storage, green open access, and renewable purchase obligations, supporting India’s broader climate goals and making it easier for industries to shift toward cleaner electricity.
Officials have indicated that the draft will undergo stakeholder discussions before being tabled in Parliament. If enacted, the Electricity (Amendment) Bill 2025 would mark one of the most significant updates to the sector in recent years, shaping the future of power supply, distribution structure, and India’s transition to a more sustainable energy ecosystem.
