The Ministry of Power has extended the timeline for submissions on the Draft National Electricity Policy 2026 by one month, with the new deadline set at 19 March. The extension followed requests from several stakeholders for additional time to examine the provisions of the draft. The ministry issued a notification dated 25 February to communicate the revised schedule.

The draft policy aims to tackle persistent problems in the power sector, notably high losses and debt of distribution companies and tariffs that are not cost reflective, as well as significant cross-subsidisation. A non-cost-reflective tariff was described in the notification as a pricing structure in which the rate charged to a particular consumer category is below the utility's average cost of supplying electricity to that category. The policy document is intended to promote measures that reduce fiscal stress and improve financial sustainability.

The ministry's explanation of cross-subsidisation noted that certain consumer groups such as industrial, commercial and higher-income domestic users are charged tariffs above the cost of supply to offset lower tariffs offered to agricultural consumers and low-income households. The draft sets out measures to address these distortions while safeguarding vulnerable consumers through targeted interventions. Stakeholders were invited to submit comments and suggestions to inform the final policy.

The draft also seeks to foster competition, ensure grid resilience to integrate higher shares of variable renewable energy and provide consumer-centric services with demand-side interventions, according to the ministry. The reform push is being pursued despite several achievements since 2005, with the ministry highlighting that challenges persist in the distribution segment. Interested parties now have until 19 March to provide feedback to the ministry.