The Ministry of Power has taken a major step toward reforming India’s electricity laws by launching a public consultation on the proposed Draft Electricity Amendment Bill, 2025. This move marks the beginning of a key legislative reform aimed at updating and improving the existing Electricity Act. An official circular was issued in October 2025 to a wide range of stakeholders, inviting their comments and feedback on the draft proposals. This consultation is seen as an important step to gather diverse opinions from across the country’s power sector before finalizing the amendments.
The Ministry has reached out to an extensive list of stakeholders, including top officials from central and state government agencies, regulatory bodies, and industry associations. Among those notified are Secretaries from major Central Ministries such as the Ministry of New and Renewable Energy, the Ministry of Housing and Urban Affairs, and the Ministry of Micro, Small & Medium Enterprises. The Ministry has also sought inputs from key regulatory institutions, including the Chairperson of the Central Electricity Authority, the Secretary of the Central Electricity Regulatory Commission, and the Secretaries of all State Electricity Regulatory Commissions.
On the operational side, the consultation has been extended to the Chairmen and Managing Directors of all Public Sector Undertakings under the Ministry of Power, as well as the CMDs and MDs of State-owned power distribution companies and generation companies. To ensure a wide-ranging discussion, the circular has also been sent to power trading platforms such as the Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), and the Hindustan Power Exchange (HPX). Industry associations like the Association of Power Producers, FICCI, CII, PHDCCI, and ASSOCHAM have also been included in the list of consultees, reflecting the Ministry’s intention to seek feedback from every major segment of the power ecosystem.
The proposed amendments in the draft bill focus largely on the electricity distribution sector, which continues to face major structural and financial challenges. One of the most significant proposals is the introduction of a framework for allowing multiple distribution licensees to operate within the same area. This move, which would amend Section 14 of the existing Act, aims to introduce competition in electricity supply and provide consumers with more options. The framework for this competitive structure will be defined under a new clause in Section 181 (2), which will outline detailed rules and conditions for implementation.
Other proposed changes strengthen the responsibilities of distribution licensees in developing and maintaining their distribution networks under Section 42. Amendments are also being considered for Section 43, which deals with the obligation of licensees to supply electricity to consumers. The Ministry is proposing that distribution licensees may be exempted from supplying power to certain categories of consumers. However, to protect consumers’ interests, a counter-provision ensures that a designated distribution licensee will be responsible for ensuring uninterrupted supply if any existing arrangement fails.
The draft bill also introduces a new clause under Section 183 to address the “Removal of difficulties.” This clause empowers the Central Government to issue orders, published in the Official Gazette, to resolve practical challenges that may arise in implementing the amended Act. These orders, however, must remain consistent with the Act’s provisions.
With the consultation process now open, the Ministry of Power aims to gather comprehensive feedback from all stakeholders before finalizing the Electricity Amendment Bill, 2025. The exercise is expected to play a crucial role in shaping the future of India’s power sector, with an emphasis on competition, accountability, and reliable electricity supply for all.
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