New Draft Electricity Amendment Bill Aims to Optimize Power Distribution

The Draft Electricity (Amendment) Bill, 2025, proposed by the Ministry of Power, seeks to eliminate redundant infrastructure in the power distribution sector. The current requirement for each new licensee to establish separate networks increases costs. The amendment allows multiple distribution licensees to utilize existing networks, with fees determined by the State Electricity Regulatory Commission. This move aims to increase competition, improve service quality, and potentially maintain subsidies for key consumer categories. The bill ensures licensees serve all customers within their area, adhering to a Universal Service Obligation.

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