Draft Electricity Amendment Bill 2025 To Cut Network Duplication
ECONOMY & POLICY

Draft Electricity Amendment Bill 2025 To Cut Network Duplication

The draft Electricity (Amendment) Bill, 2025 proposes to reduce duplication in distribution infrastructure by permitting distribution licensees to use another licensee's network on payment of charges set by the State Electricity Regulatory Commission.

The Electricity Act, 2003 already permits multiple distribution licensees in the same area and requires non-discriminatory open access to networks, but new entrants have typically constructed separate poles, wires and substations. The amendment aims to lower overall costs and make power more affordable by removing the need for redundant physical infrastructure.

Under the Act the area of supply for each distribution licensee is defined and must be approved by the regulatory commission at the time of granting a licence. Subordinate legislation sets a minimum geographical area for a licence, which may cover an entire municipal corporation or at least three adjoining revenue districts, while smaller areas require specific notification by the appropriate government. The draft bill retains these territorial parameters while enabling shared use of network assets.

Every distribution licensee, whether public or private, will continue to have a universal service obligation to supply electricity to all consumers in its area of supply without discrimination, although large consumers may be exempted by the commission as provided in the draft. The amendment would require State Electricity Regulatory Commissions to establish a clear framework for introducing multiple licensees within the same supply area, with measures to ensure transparency and fairness. The intention is to maintain service obligations while facilitating competition and operational efficiency.

The government envisages no adverse impact on agricultural or domestic consumers and expects competition to improve quality of service, while subsidies for specified consumer categories may continue to be provided by the state government under Section 65 of the Act. The information was provided by the Minister of State in the Ministry of Power, Shri Shripad Naik, in a written reply in the Rajya Sabha. The draft seeks to balance universal service obligations with more efficient use of existing distribution networks.

The draft Electricity (Amendment) Bill, 2025 proposes to reduce duplication in distribution infrastructure by permitting distribution licensees to use another licensee's network on payment of charges set by the State Electricity Regulatory Commission. The Electricity Act, 2003 already permits multiple distribution licensees in the same area and requires non-discriminatory open access to networks, but new entrants have typically constructed separate poles, wires and substations. The amendment aims to lower overall costs and make power more affordable by removing the need for redundant physical infrastructure. Under the Act the area of supply for each distribution licensee is defined and must be approved by the regulatory commission at the time of granting a licence. Subordinate legislation sets a minimum geographical area for a licence, which may cover an entire municipal corporation or at least three adjoining revenue districts, while smaller areas require specific notification by the appropriate government. The draft bill retains these territorial parameters while enabling shared use of network assets. Every distribution licensee, whether public or private, will continue to have a universal service obligation to supply electricity to all consumers in its area of supply without discrimination, although large consumers may be exempted by the commission as provided in the draft. The amendment would require State Electricity Regulatory Commissions to establish a clear framework for introducing multiple licensees within the same supply area, with measures to ensure transparency and fairness. The intention is to maintain service obligations while facilitating competition and operational efficiency. The government envisages no adverse impact on agricultural or domestic consumers and expects competition to improve quality of service, while subsidies for specified consumer categories may continue to be provided by the state government under Section 65 of the Act. The information was provided by the Minister of State in the Ministry of Power, Shri Shripad Naik, in a written reply in the Rajya Sabha. The draft seeks to balance universal service obligations with more efficient use of existing distribution networks.

Next Story
Resources

RR Kabel Appoints Kamaljeet Kaur as CHRO

RR Kabel has appointed Kamaljeet Kaur as Chief Human Resources Officer (CHRO), reinforcing its focus on strategic talent management, organisational effectiveness, and HR transformation. In her new role, Kaur will lead the company’s HR function, focusing on leadership development, employee engagement, and building a high-performance, people-centric culture aligned with the company’s growth ambitions. With over 22 years of experience, she brings expertise across industrial relations, talent management, learning and development, performance management, compensation and benefits, compliance,..

Next Story
Infrastructure Energy

Repos Energy Signs MoU with DPIIT to Boost Fuel-Tech Innovation

Repos Energy has signed a non-binding Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, to advance the country’s technology and innovation ecosystem. The agreement was formalised on 25 March 2026 in the presence of senior DPIIT officials.Amid rising geopolitical tensions and supply chain disruptions, the partnership highlights the growing importance of efficient last-mile fuel distribution. The collaboration aims to support startups, innovators and entrepreneurs, while promoting technology-led solutions in critica..

Next Story
Infrastructure Energy

CALB Reports 60% Revenue Growth in 2025

CALB Group reported strong financial performance for the year ended 31 December 2025, with revenue reaching RMB 44,400.07 million, up 60 per cent year-on-year. Profit surged over 140 per cent to RMB 2,095.22 million, reflecting significant improvement in profitability.The company strengthened its position across power batteries and energy storage, with market share gains in both segments. In October 2025, its power battery installations ranked among the global top three on a monthly basis, while the commercial EV segment recorded 630 per cent year-on-year growth in early 2026.CALB expanded its..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement