India’s New Electricity Rules To Bring Revolutionary Changes to Transmission Licenses for Large Consumers

low angle photo of gray transmission tower
Representational image. Credit: Canva

The Ministry of Power in India has released the Draft Electricity (Amendment) Rules, 2023, which propose significant changes to the mandatory transmission license requirement for captive and bulk power consumers.


Interested stakeholders have the opportunity to provide their comments on the draft proposal of the Electricity (Amendment) Rules until July 28, 2023.

These amendments have been introduced with the objective of improving the efficiency and transparency of the electricity sector in India. By eliminating the need for transmission licenses for captive and bulk power consumers, the rules seek to streamline the process and remove unnecessary barriers for these types of consumers.


It also aim to bring substantial changes to the regulatory framework with a focus on competition, renewable energy integration, and strengthening consumer rights.

The reforms include the establishment of a National Power Committee to coordinate policies, separate functions of distribution licensees, and promote innovation and service quality. The rules also introduce Renewable Generation Obligations for distribution licensees to increase renewable energy procurement and propose a Renewable Energy Management Centre for efficient integration of renewable resources. Additionally, the amendments emphasize the creation of consumer grievance forums and the implementation of advanced metering infrastructure to empower consumers, promote transparency, and enable better energy management.

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Furthermore, the proposed cap on the additional surcharge for open access consumers is intended to make the charges more reasonable and affordable. This move is expected to encourage greater participation in open access and promote a more competitive and dynamic electricity market.

Overall, the Draft Electricity (Amendment) Rules, 2023, demonstrate the Ministry of Power’s commitment to reforming the electricity sector and fostering an environment that supports efficiency, transparency, and accessibility for consumers in India.

View the official document here:

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