The Draft Electricity (Amendment) Bill, 2025 | Ministry Of Power Invites Comments/objections/suggestions

Section 9(1)

Provides the legal basis for captive generation. However, it does not explicitly empower the Central and State Governments to make rules governing captive generation.

An explicit proviso is proposed to be introduced empowering the Appropriate Government to prescribe the eligibility criteria for captive generating plants and their users.

Section 14 (Sixth Proviso)

The proviso currently permits multiple distribution licensees with separate networks in the same distribution / license area.

The phrase "through their own distribution system within the same area" is proposed to be substituted with "through their own or shared distribution system within the same area in accordance with the framework as specified by the Commission". The proposed amendment signifies a legislative intent to promote competition and enable the operation of multiple distribution licensees within the same area of supply through shared network infrastructure.

A corresponding regulation-making power has been proposed under Section 181 to enable State Commissions to specify the framework for such shared distribution systems.

Section 42(1)

The provision currently permits parallel licensees to supply electricity in the same supply area, but with their own network.

The proposed amendment explicitly mandates provisions of non-discriminatory open access to the existing distribution network.

Section 43

The provision imposes a universal supply obligation on distribution licensees to supply power to all consumer categories, including consumers capable of sourcing their own power.

A new sub-section has been proposed to exempt the distribution licensee from its obligation to supply electricity to all consumers, who require a supply of electricity, where the maximum power to be made available at any time exceeds 1 MW, subject to approval of State Commission (in consultation with State Government).

Section 64(1)

The provision does not explicitly authorize the Appropriate Commissions to determine tariffs on a suo moto basis.

The generating companies and licensees are mandated to file applications for tariff determination within the time and manner specified by the Appropriate Commission. In the event of non-adherence to the timeline, the Commission may determine the tariff suo motu, ensuring that new tariffs take effect from the beginning of the next financial year.

Section 86(1)(e)

The provision empowers State Commissions to specify the minimum percentage of purchase i.e., Renewable Purchase Obligation (RPO).

Simultaneously, Section 14(x) of the Energy Conservation Act, 2001 empowers the Central Government to specify minimum percentage of consumption i.e., Renewable Consumption Obligations (RCO) by designated consumers.

Notably (i) the term "renewable energy" is proposed to be substituted with "non-fossil sources"; and (ii) the RPO specified by State Commissions shall not be less than the level prescribed by the Central Government. This proposed amendment aligns the RPO with the nationwide RCO under the Energy Conservation Act, 2001.

Section 92

Currently, there is no time limit for adjudicatory proceedings of the Commissions.

A provision is proposed to be introduced mandating that all proceedings before the Appropriate Commission shall be decided expeditiously, with an endeavour to dispose of matters within 120 days. In the event of delay, the Appropriate Commission is required to record reasons for such delay.

Section 112

The Appellate Tribunal for Electricity (APTEL) currently comprises of a Chairperson and 3 members.

There is a proposal to increase the number of members of the APTEL from 3 to not more than 7 in addition to the Chairperson.

Section 142

The provision does not provide for a specific penalty in cases of non-compliance with RPO targets.

A specific penal provision for non-compliance with RPO targets is proposed to be introduced. The Appropriate Commission may impose a penalty ranging from INR 0.35 to INR 0.45 per kilowatt-hour of default, without prejudice to other penalties under the Electricity Act, 2003.

Section 164

Power vested with Appropriate Government to allow placing of electric lines or electrical plant for the transmission of electricity or other purposes.

Establishes Electrical Line Authority for right-of-way and line construction disputes.

Section 176

Currently, there is no express power to prescribe certain technical or operational criteria.

The Central Government is empowered to make rules, inter alia, (i) the eligibility criteria for captive generating plants; (ii) the manner of implementation of inter-State transmission networks; and (iv) minimum non-fossil energy consumption.

Section 180

Currently, there is no such power given to the State Governments.

The State Governments are empowered with to make rules regarding intra-State transmission networks and frameworks for laying electric lines, including compensation determination.

Section 181

Currently, there is no such powers given to the State Commissions.

The State Commissions are empowered to frame regulations for operation of multiple distribution licensees, development and maintenance of the distribution system, and exemption from universal supply obligations in certain cases.