ENA Sectors 2025-12-04 17:46:11 <p><span style="font-size:14px"><strong>New Delhi, Dec 4 (KNN) </strong>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.</span></p> <p><span style="font-size:14px"><strong> Existing Framework and Proposal</strong></span></p> <p><span style="font-size:14px">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. </span></p> <p><span style="font-size:14px">Currently, licensees must maintain separate networks, resulting in duplication and higher operational costs.</span></p> <p><span style="font-size:14px">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). </span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px"><strong> Consumer Protection Measures</strong></span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">The proposal is intended to foster competition, improve efficiency, and maintain affordable electricity for consumers without straining existing distribution companies.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 44308 https://knnindia.co.in/news/newsdetails/sectors/electricity-amendment-bill-2025-enables-multiple-licensees-to-operate-in-the-same-area-says-mos-power 2025-12-04 17:46:11 knnindia.co.in