New Delhi: In a bid to allay concerns over a potential increase in tariffs for farmers and impact on operations of state-run power distribution companies (discoms) due to the proposed Electricity (Amendment) Bill 2025, the power ministry on Thursday said the changes would only bring in "fair competition" and reduce the cost of power supply.

It said the new bill will not erode the autonomy of states, and would in fact preserve federal balance.

In the power sector, cross-subsidy is a mechanism where some consumers, typically industrial or commercial users, pay higher electricity tariffs to cover the costs of providing subsidized power to other consumer groups such as households and farmers. Also Read | Power play: Will states accept the draft Electricity Bill 2025?

The ministry on Th

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