Electricity Bill Sparks Debate Over Privatisation and Efficiency
The Electricity (Amendment) Bill, 2025 aims to enhance the power distribution sector by fostering financial discipline and competition. While the government promotes cooperative governance, the All India Power Engineers Federation opposes it, fearing privatisation. The bill seeks to improve service efficiency and consumer options through shared network usage.
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- India
On Thursday, the government unveiled the Electricity (Amendment) Bill, 2025, a move aiming to improve the power distribution sector via financial discipline and competition. Advocates highlight its potential to enhance efficiency, while critics, like the All India Power Engineers Federation, worry about its privatisation agenda.
Despite opposition, the government insists the bill preserves federal balance and encourages healthy competition. Through shared network usage, it aims to eliminate duplication, reduce technical and commercial losses, and provide real consumer choice by breaking monopoly supply chains.
The bill also addresses cross-subsidy elimination for industries, including Railways and Metros, aiming to boost competitiveness and job creation. Regulated wheeling charges set by SERCs will ensure all distribution network users pay equitable fees.
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