Electricity Amendment Bill 2025 Proposes Shared Use Of Power Distribution Networks: MoS Naik

New Delhi, Feb 10 (KNN) Minister of State for Power Shripad Naik has said the proposed Electricity (Amendment) Bill, 2025 aims to reduce duplication of power distribution infrastructure and improve efficiency without adversely affecting consumers.

In a written reply to a question in the Rajya Sabha on Monday, the Minister said the Electricity Act, 2003 already allows multiple distribution licensees in the same area and provides for non-discriminatory open access to distribution networks. 

However, he noted that the current requirement for each new licensee to build its own network of poles, wires and substations has led to duplication and higher costs.

Shared Network Use Proposed

The draft amendment proposes to allow distribution licensees to use the existing network of another licensee by paying charges fixed by the State Electricity Regulatory Commission (SERC). According to the minister, this would help avoid wasteful infrastructure creation and lower overall costs.

Naik said that supply areas for distribution licensees will continue to be approved by SERCs, with existing rules prescribing minimum geographical coverage, such as an entire municipal corporation or at least three adjoining revenue districts, unless otherwise notified.

Consumer Safeguards

He added that all distribution licensees, public or private, will retain a universal service obligation to supply electricity to all consumers, including rural and domestic users, without discrimination. 

Exemptions may apply only to certain large consumers, as determined by the SERC. 

The amendment also proposes that regulators create a transparent framework for introducing multiple licensees in the same area.

The minister said the changes are not expected to harm agricultural or domestic consumers and that increased competition could improve service quality. 

(KNN Bureau)