Electricity (Amendment) Bill 2025 Enables Multiple Licensees To Operate In The Same Area, Says MoS Power

New Delhi, Dec 4 (KNN) The Ministry of Power has addressed concerns regarding proposals to issue multiple electricity distribution licenses in a single area, as envisaged under the Electricity (Amendment) Bill, 2025.

  Existing Framework and Proposal

Minister of State for Power Shripad Naik, in a written reply in the Lok Sabha on Thursday, highlighted that under Section 14 of the Electricity Act, 2003, multiple distribution licenses can be granted in the same area to promote competition and efficiency. 

Currently, licensees must maintain separate networks, resulting in duplication and higher operational costs.

To address this, the Government has proposed enabling distribution licensees to supply electricity using either their own or a shared network, with applicable network charges and oversight by the State Electricity Regulatory Commission (SERC). 

According to the Ministry, this approach will not impose additional financial burdens on existing government or private licensees, as users are responsible for paying the network charges determined by the SERC.

  Consumer Protection Measures

Under Section 65 of the Act, State Governments retain the flexibility to provide subsidies for specific consumer categories, including domestic and agricultural consumers, ensuring that no group is disproportionately impacted by the introduction of multiple licenses.

The proposal is intended to foster competition, improve efficiency, and maintain affordable electricity for consumers without straining existing distribution companies.

(KNN Bureau)