New Delhi: The government on Saturday said that the Electricity (Amendment) Bill, 2025 introduces key reforms to modernise India’s power sector, promoting competition in distribution, strengthening regulatory oversight, and supporting fair pricing mechanisms.

The Bill was brought forward to resolve deep-rooted inefficiencies, like persistent financial losses in distribution companies (discoms) due to poor billing efficiency, high aggregate technical and commercial (AT&C) losses; lack of competition in electricity supply, with consumers tied to a single discom, limiting service quality and innovation; and cross-subsidisation distortions, where industrial users pay inflated tariffs to subsidise other categories, making Indian manufacturing less competitive.

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