Law and statutory body

Electricity (Amendment) Bill, 2025 (draft)

GS3 Infrastructure: EnergyGS2 Centre-State relationsPrelims and Mains

In the news since 29 January 2026

Why in news
On 29 January 2026, the Power Ministry told the Lok Sabha that the draft Electricity (Amendment) Bill, 2025 is still at the stakeholder consultation stage. Comments on the draft were invited on 9 October 2025.
What it is
The Electricity Act, 2003 is the main law for generation, transmission, distribution, trading and tariffs in India's power sector. It created regulatory commissions (CERC at the Centre, SERCs in States) and the Appellate Tribunal for Electricity (APTEL). The 2025 draft amends this Act to fix distribution finances and widen competition.
Tariff reform
The draft mandates cost-reflective tariffs and lets regulatory Commissions fix tariffs suo motu, effective 1 April each year.
Energy transition
To reach 500 GW non-fossil capacity by 2030, CERC would get power to introduce market-based instruments, and non-fossil energy obligations would be made enforceable.
Regulatory accountability
Governments may refer complaints against CERC and SERC Members, with wider grounds for removal; a 120-day timeline for adjudicatory decisions; APTEL strength to rise.
Telegraph Act link
Powers for installing and maintaining electric lines move from the repealed Telegraph Act, 1885 into the Electricity Act, 2003, with States framing the compensation framework.
Shared networks
Distribution licensees could supply power over shared networks, subject to regulatory approval and charges, to cut network duplication.
Subsidies
State Governments may continue to fund subsidies for specified consumer categories, including tribal households, under Section 65.

Don’t confuse with CERC vs SERC: CERC regulates central generating companies and inter-State transmission and trade; SERCs regulate tariffs and distribution within a State.

Don’t confuse with APTEL vs regulatory commissions: APTEL is the appellate body hearing appeals against orders of CERC and SERCs; the commissions are the primary regulators.

Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.

Test yourself

Worth revising until Prelims 2027: most news questions come within two years of the event.

Each time it was in the news

  1. 29 January 2026

    On 29 January 2026, the Power Ministry told the Lok Sabha that the draft Electricity (Amendment) Bill, 2025 is still at the stakeholder consultation stage. Comments on the draft were invited on 9 October 2025.