Taking a major step towards energy self-reliance, the Government of India on November 22 introduced the Electricity (Amendment) Bill, 2025, calling it an important step towards modernizing the country’s struggling power sector. Amid growing demand – which is projected to grow 80% by 2040 – these reforms target long-standing problems like the debt pile of ₹6.9 trillion on discoms, AT&C losses of more than 20% in states, and monopolistic supply chains that stifle innovation and increase costs for industries.

In fact, this bill promotes **regulated competition in distribution**, thereby ending single-discom monopoly. Multiple license holders—public or private—can now compete on a single platform, sharing an optimized infrastructure like an interstate transmission grid under the supervision of the Central Electricity Regulatory Commission (CERC). This “third-generation reform,” based on lessons learned from the 2003 Act and the stalled 2022 bill, provides consumers with choices that can reduce service gaps and increase reliability.

Specific safeguards include **Universal Service Obligation (USO)**, which mandates equitable access for all, while providing exemptions through open access for high-voltage users (>1 MW) in collaboration with State Electricity Regulatory Commissions (SERCs). To protect vulnerable groups, it implements **Cost-Reflective Tariff** with transparent Section 65 subsidies for farmers and BPL families, thereby reducing hidden burdens. A game-changer for ‘Make in India’: Cross-subsidies for manufacturing, railways and metros will end in five years, reducing production cost increases by 10-15% and enhancing global competitiveness.

**Electricity Council** for centre-state coordination, tariff increase by SERC for delays and penalties for non-compliance provide a boost to regulatory power. Innovations such as **Energy Storage Systems (ESS)** integration and cyber security norms for the grid are aligned with Develop India@2047, thereby promoting renewable energy and foreign investment.

Critics note hurdles to implementation – state buy-in and tribunal expansion – but supporters see it as a financial lifeline, promising discom viability and a green transition. As Parliament prepares to follow public consultation (closes on November 9), the bill signals India’s move from a swamp of subsidies to a dynamic, consumer-centric power ecosystem.