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Power Ministry Extends Deadline For Draft NEP Feedback
POWER & RENEWABLE ENERGY

Power Ministry Extends Deadline For Draft NEP Feedback

The Ministry of Power has extended the deadline for stakeholder comments on the Draft National Electricity Policy 2026 by one month to 19 March. The extension followed requests from several stakeholders seeking additional time to examine the draft and its provisions. The notification was issued on 25 February. Earlier the last date for comments had been 19 February.\n\nThe draft policy aims to tackle persistent issues in the power sector, including high financial losses and the indebtedness of distribution companies, non-cost-reflective tariffs and high cross-subsidisation that distort pricing signals. It seeks to promote competition, enhance grid resilience to accommodate increasing shares of variable renewable energy and deliver consumer-centric services through demand-side interventions. The reform agenda is being advanced despite progress since 2005, with the distribution segment identified as the principal area of concern.\n\nThe statement elaborates that a non-cost-reflective tariff arises when the price charged to a category of consumer falls below the average cost of supplying electricity to that category, thereby necessitating cross-subsidies from other user groups. Cross-subsidisation typically involves charging industrial, commercial and higher-income domestic consumers above cost to subsidise agricultural users and low-income households. Addressing these distortions is presented as central to achieving financial sustainability and improving tariff signals for efficient consumption and investment.\n\nStakeholders and interested parties are invited to submit comments by the revised deadline, with the ministry encouraging detailed feedback on specific provisions that affect distribution reform, tariff design and renewable integration. Officials expect that the additional time will enable more informed responses and facilitate consensus on measures that balance financial viability with consumer protection. The policy process is described as consultative and aims to finalise recommendations that can be implemented through coordination with state utilities and regulators.

The Ministry of Power has extended the deadline for stakeholder comments on the Draft National Electricity Policy 2026 by one month to 19 March. The extension followed requests from several stakeholders seeking additional time to examine the draft and its provisions. The notification was issued on 25 February. Earlier the last date for comments had been 19 February.\n\nThe draft policy aims to tackle persistent issues in the power sector, including high financial losses and the indebtedness of distribution companies, non-cost-reflective tariffs and high cross-subsidisation that distort pricing signals. It seeks to promote competition, enhance grid resilience to accommodate increasing shares of variable renewable energy and deliver consumer-centric services through demand-side interventions. The reform agenda is being advanced despite progress since 2005, with the distribution segment identified as the principal area of concern.\n\nThe statement elaborates that a non-cost-reflective tariff arises when the price charged to a category of consumer falls below the average cost of supplying electricity to that category, thereby necessitating cross-subsidies from other user groups. Cross-subsidisation typically involves charging industrial, commercial and higher-income domestic consumers above cost to subsidise agricultural users and low-income households. Addressing these distortions is presented as central to achieving financial sustainability and improving tariff signals for efficient consumption and investment.\n\nStakeholders and interested parties are invited to submit comments by the revised deadline, with the ministry encouraging detailed feedback on specific provisions that affect distribution reform, tariff design and renewable integration. Officials expect that the additional time will enable more informed responses and facilitate consensus on measures that balance financial viability with consumer protection. The policy process is described as consultative and aims to finalise recommendations that can be implemented through coordination with state utilities and regulators.

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