Summary:
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## **1. Context**
* Issued by the **Ministry of Power (MoP)** on **7th October 2025**.
* The Ministry has prepared a **Draft Electricity (Amendment) Bill, 2025**, proposing revisions to the **Electricity Act, 2003**.
* Objective: Strengthen the power sector by promoting competition, improving efficiency, ensuring grid reliability, and accelerating energy transition goals.
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## **2. Public Consultation**
* The MoP has **invited comments/suggestions** from all stakeholders — including **state governments, regulators, DISCOMs, utilities, industries, consumer groups, and the general public**.
* Comments can be submitted via email to:
📧 **[dewa@nic.in](mailto:dewa@nic.in)**
* **Deadline:** **25th October 2025**.
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## **3. Purpose of the Amendment**
The draft amendment seeks to update the Electricity Act to:
* Reflect the growing role of **renewable energy and energy storage**.
* Enable **open and competitive markets** in power generation and distribution.
* Improve **financial viability of DISCOMs**.
* Introduce **stronger compliance mechanisms** for Renewable Purchase and Consumption Obligations (RPO/RCO).
* Ensure **consumer rights and service quality** through stricter oversight.
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## **4. Key Provisions (Indicative Based on the Notice)**
While the detailed draft bill is part of the consultation document, the notice indicates the amendment will focus on:
1. **Separation of Carriage and Content:**
* Introducing **distribution competition** by allowing multiple supply licensees in the same area.
2. **Promotion of Renewables:**
* Mandating **renewable procurement** and integration into the grid.
* Legal reinforcement of **Renewable Consumption Obligation (RCO)** and inclusion of **energy storage**.
3. **Strengthening Regulatory Framework:**
* Enhancing the powers of **Central and State Electricity Regulatory Commissions (CERC & SERCs)**.
* Ensuring **uniform regulatory practices** across states.
4. **Tariff Rationalization & Subsidy Reform:**
* Promoting **cost-reflective tariffs** while allowing **direct benefit transfer (DBT)** for subsidies to consumers.
5. **Enforcement & Penalties:**
* Stricter penalties for **non-compliance** with license conditions, grid codes, or renewable obligations.
6. **Grid Reliability & Decarbonization:**
* Enabling **grid-scale storage**, flexible generation, and **green hydrogen integration**.
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## **5. Submission Process**
* Comments must be sent **in prescribed format**, indicating **clause number, proposed change, and justification**.
* Stakeholders can send suggestions electronically to the Ministry before **25th October 2025**.
* After review, the Ministry may finalize and forward the Bill for **Cabinet and Parliamentary approval**.
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## **6. Implications**
* The amendment will modernize the 2003 Act to align with **India’s net-zero targets**.
* It will support the ongoing **energy market liberalization**, ensure **consumer empowerment**, and attract **private investment** into renewables, distribution, and storage infrastructure.
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